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The European Union has begun discussions on increased regulation of cryptocurrencies in order to prevent circumvention of sanctions
The EU is considering new measures to tighten regulation of cryptocurrencies to combat sanctions circumvention. This is reported by the Financial Times with reference to EU finance ministers. Ministers and other officials are said to have discussed the risk that cryptocurrencies could be used to circumvent sanctions.
Among those who called for tighter crypto regulation were the head of the ECB, Christine Lagarde, as well as French Finance Minister Bruno Le Maire. According to unofficial information, the parties agreed to take steps to “further increase the effectiveness” of sanctions and stop any evasive measures, including with the help of cryptocurrencies. However, it is not reported what measures can be taken against cryptocurrencies.
Earlier it became known that the US Department of the Treasury is also working on the issue of pressure on cryptocurrency exchanges that will provide services to sanctioned Russian banks.
According to ex-employee of the US Department of the Treasury Ari Redbord, a blow to trading floors will be dealt if they are in contact with banks that have fallen under sanctions, including VTB and Sberbank. One of the tacit reasons for hitting the Russian cryptocurrency market is that virtual assets can be used to circumvent sanctions.
Recall that on February 24, Russian President Vladimir Putin announced the start of a “special military operation” in the Donbass. According to the politician, the purpose of the action is “to protect people who have been subjected to bullying and genocide by the Kiev regime for eight years.”
In response, Ukrainian President Volodymyr Zelensky announced the introduction of martial law throughout the country. He noted that Russia “carried out strikes on our military infrastructure, on our border guards.” According to Interfax, the countries of the European Union, Great Britain, Canada, as well as the United States, following the escalation of the conflict, imposed personal sanctions against Russian President Vladimir Putin, as well as other high-ranking officials. Sanctions were also imposed against the Central Bank of the Russian Federation and large Russian banks.
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