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G7 and EU Finance Ministers takes support of cryptocurrency to combat Russian sanction evasion

The European Union and G7 FMs said they are trying to prevent Russia from exploiting cryptocurrency to escape sanctions.

German Finance Minister Christian Lindner stated that the recent economic sanctions imposed on Russia were discussed with central bank governors in virtual discussions with Ukraine’s Finance Minister Serhiy Marchenko earlier this week. Despite his refusal to provide specifics, Lindner conceded that cryptocurrencies were a top focus.

We know what the problem is, and we’re working on it, Lindner stated in an interview with Welt TV. It’s about isolating Russia at all levels and using the utmost ability to penalise — and that includes crypto assets, he added. Last week, European Central Bank President Christine Lagarde pushed the EU to approve crypto legislation that would aid in the execution of these measures.

Markets in Crypto Assets (MiCA) legislation in the European Parliament intends to establish a regulatory framework that might possibly expedite the administration of sanctions. Sanctions have already been imposed, restricting the ability of Russian financial institutions to use cryptocurrencies, making the option of cryptocurrencies particularly enticing at the moment. Indeed, as Lindner points out, they must be addressed correctly in order for penalties to have their full impact.

US President Biden’s administration has asked cryptocurrency exchanges to exclude Russian users from their services. In addition to the Treasury Department and White House staff, Ukrainian Vice Prime Minister Mykhailo Fedorov advised cryptocurrency exchanges not to serve Russians.

Many exchanges opted to comply with the request, and the world’s largest exchange, Binance, stated that those on the sanction list would not be served. While CEO Changpeng Zhao stressed that Binance strictly adheres to sanctions rules, he also stated that the exchange would not impose a blanket ban on all Russian nationals, calling it “unethical.”

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Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
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