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ECB President Urges Rigorous Crypto Regulation In The Wake Of Russian Sanctions

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ECB Eyeing the Possibility of Issuing A Digital Euro
ECB Eyeing the Possibility of Issuing A Digital Euro

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The ongoing war in Ukraine following the Russian invasion has given rise to increased calls to set up a global crypto regulatory framework.

Already, the IMF, Bank of England, and even the Indian Prime Minister Modi have made calls for crypto to have a global structured regulation. But the response to such calls has been slow.

However, a proposed White House Executive Order gave asked agencies to mitigate risks that come from cryptocurrencies in the interest of national security.

Apart from exploring the feasibility and benefits of the digital dollar, the agencies were also charged to work with global regulators to formulate a crypto regulatory framework.

Lagarde Wants Rigorous Implementation Of Crypto Regulation

ECB President Christine Lagarde has spoken about the need for the EU to speedily implement the global regulatory framework. She was speaking at a live “Informal Meeting of Ministers for the Economy and Finance.” She was speaking in response to the consequence of the Russian invasion of Ukraine.

She stated that the ECB will liaise with all national central banks in the euro system to rigorously implement all the sanctions by the European governments. She noted that the EU would have taken cryptocurrencies and digital assets into consideration for the sanctions if a regulatory framework was in place.

Russia Could Use Crypto To Evade Sanctions

During the Q&A, Lagarde called on lawyers to speed up the proposal for digital assets regulatory framework known as Markets in Crypto Assets (MiCA).

She added that a ban may sometimes not be circumvented via criminal ways. As a result, Lagarde noted that it’s very critical that the MiCA is pushed through as soon as possible to establish a proper regulatory framework.

Lagarde was responding to questions about Russia’s use of crypto to evade sanctions by the European Union.

A lack of regulatory oversight in digital assets can allow Russia to raise funds via digital wallets and crypto exchanges. Lagarde says such a situation has given the need to quickly set up a regulatory framework for digital assets.

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