Global Regulators Monitor Crypto Use During Ukraine War
March 21, 2022
The Financial Stability Board is looking closely at the use of crypto-assets during the war in Ukraine after fears they could be used to evade Western sanctions against Russia
The Global Financial Stability Board is looking closely at the use of crypto-assets during the war in Ukraine after fears they could be used to evade Western sanctions against Russia.
The crypto sector is on the defensive amid warnings from US and European lawmakers that digital asset firms are not up to the task of complying with Western financial sanctions imposed on Russia following the country’s invasion of Ukraine.
Some crypto exchanges have rejected calls to cut off all Russian users, raising concerns that crypto could be used as a way to circumvent sanctions.
Ukraine has also raised millions of dollars in cryptocurrencies after posting appeals on social media for donations of bitcoins and other digital tokens.
“We at the FSB are monitoring the situation, the adversarial situation with cryptos,” Patrick Armstrong, a member of the FSB secretariat, told a City & Financial conference.
The FSB, which brings together financial regulators, central banks and finance ministry officials from Group of 20 economies, shares the information it obtains among its members, Armstrong said.
John Glen, Britain’s financial services minister, said at the same conference that the steps the UK has already taken to subject crypto-assets to anti-money laundering and counter-terrorist financing will support enforcement. of the law in the field of crypto-assets.
“We believe these measures will actively support the government’s response to Russia’s invasion of Ukraine,” Glen said.
• Reuters with additional editing by Jim Pollard