ECB president, Christine Lagarde, warns crypto firms against helping Russia avoid sanctions

The sanctions imposed against Russia by the Western countries have put pressure on cryptocurrency exchanges. Some regulators have expressed concern over how Russia could use cryptocurrencies to avoid these sanctions.

The president of the European Central Bank, Christine Lagarde, has warned cryptocurrency firms from doing anything that will aid Russians in avoiding the imposed sanctions.

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

ECB president urges crypto firms to comply with Russia sanctions

The sanctions imposed against Russia by the US and its Western allies have greatly affected the value of the Russian ruble. This has prompted speculations that Russia could turn towards cryptocurrencies to avoid these sanctions.

Lagarde, a cryptocurrency critic, recently noted that the ECB was concerned about the increased use of digital assets by Russians. She stated that the use of cryptocurrencies allowed Russians to bypass the sanctions imposed by the West following the country’s invasion of Ukraine.

In a recent online meeting held by the institution, Lagarde warned that crypto companies that aided Russia in bypassing the sanctions would face increased scrutiny.

“We have taken steps to clearly signal to all those who are exchanging, transacting, offering services in relation to crypto assets that they are being accomplices to circumvent sanctions,” she said.

Use of crypto to avoid sanctions

Countless sanctions have been levied against Russia, targeting oligarchs and financial institutions in the country. President Putin has also been targeted by these sanctions. As all this happens, the crypto trading volumes coming from Russia have skyrocketed since the war began.

The high trading volumes have also led to some regulators suggesting that Russian oligarchs were transferring their assets into digital assets. However, this has been debated against, given the public nature of blockchain. Transactions made on the blockchain can be easily traced, making it a less preferred option by Russian oligarchs that want to hide their wealth.

Calls for cryptocurrency exchanges to halt all their operations in Russia have also been made. Major exchanges have stated that they will abide by the sanctions and ban sanctioned individuals and institutions from using their platforms. However, these platforms have argued against a unilateral ban of all Russian users.