ECB President: Create a crypto regulatory framework now to prevent Russia from ‘circling the law’

European Central Bank (ECB) President Christine Lagarde has urged lawmakers to adopt a regulatory framework for cryptocurrencies, alluding to potentially blocking Russia from circumventing economic sanctions.

Christine Lagarde – President of the ECB

At an informal meeting of business and finance ministers on Friday, Lagarde said the ECB would “firmly and strictly” implement sanctions against Russia imposed by lawmakers in response to Ukraine’s invasion.

As for the possibility of Russia using cryptocurrencies to circumvent some of these measures, the ECB President has called for action on an existing proposal for a regulatory framework for digital assets.

“Whenever there is a ban or boycott/ban mechanism, there are always ways for criminals to ‘circumvent the law’. It is extremely important right now that the MiCA is accelerated to create a regulatory framework within which crypto assets cannot go “net”.

MiCA (Markets in Crypto Assets) has proposed “creating a regulatory framework for the crypto asset market that supports innovation and captures the potential of this asset class” in a way that preserves financial stability and protects investors.”

The proposal, first presented to the European Commission in September 2020 and adopted by the European Council in November 2021, is due to be put to the vote by the European Parliament on Monday.

However, reporter Stefan Berge announced on Friday that he postponed the vote out of concern that it would be misconstrued as a PoW crypto mining ban. There is currently no scheduled date for EU officials to vote on the framework.

On Thursday, US President Joe Biden announced a series of sanctions aimed at imposing “devastating costs” on Russia as a result of its invasion of Ukraine. The President announced that the United States and its allies would impose sanctions on Russia’s five major banks, as well as a number of elite citizens who “have enriched themselves at the expense of their families.” The economic measures do not include the removal of Russia from the SWIFT payment system or electronic funds transfers.

The situation in Ukraine remains complicated, with reports of Russian bombings across the country, including a military airport near the capital Kiev, since Russian President Vladimir Putin announced a “special military operation” on Thursday. Members of the crypto community donated to the Ukrainian military and local organizations when the crisis hit.

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