Russia avoids sanctions, the G7 is looking to put a stop to the usage of cryptoassets

The Group of Seven industrialised nations are examining ways to stop individuals or companies targeted by Western sanctions over Russia’s invasion of Ukraine using cryptocurrencies to dodge the punitive measures, Germany’s finance minister said Wednesday.

“We should take measures to prevent listed persons and institutions from switching to unregulated cryptoassets. We are working towards this in the context of the German presidency of the G7,” said Christian Lindner.

Last week, European Central Bank President Christine Lagarde urged the approval of EU crypto regulations which could help with the implementation of these sanctions. The legislation in the European parliament, known as Markets in Crypto Assets (MiCA), aims to establish a regulatory framework that could also facilitate the application of sanctions.

Since the United States and its Western allies launched a barrage of sanctions against Russia’s banking system and currency in response to last week’s invasion, cryptocurrency sales in rubles have reached new highs.

Some Russian banks have been cut off from the SWIFT messaging system, thus isolating them from the rest of the world.

Western sanctions prohibiting transactions with Russia’s central bank have also wreaked havoc on the country’s economy.

As a result, Russians are flocking to cryptocurrencies such as bitcoin and tether

Governments, on the other hand, can require shopping platforms to impose limits on cryptocurrency purchases as a means of thwarting attempts to circumvent sanctions.

Mykhailo Fedorov, Ukraine’s deputy prime minister and minister of digital development, has urged that crypto platforms block Russian accounts via Twitter.

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