Estonian Prime Minister Calls for Restriction of Cryptocurrencies – Regulation Bitcoin News

Estonia’s Prime Minister has stated that cryptocurrencies should be limited in order to close loopholes used by sanctioned Russian entities for evading punitive actions. The premier also wants to see all Russian and Belarusian banks removed from the worldwide payment network.

Beware of Sanction Evasion

The Estonian prime minister, Kaja Kallas, has told U.S. Secretary of State Antony Blinken that cryptocurrencies must be “restricted” in order to deny Russia the opportunity to evade recently imposed sanctions.

Prime Minister Kallas’ comments, published by Reuters, came a day after the Financial Crimes Enforcement Network (FinCEN) asked financial institutions to be on the lookout for Russian attempts to evade sanctions.

These comments came as the Biden administration is set to sign an executive directive that instructs U.S. agencies study both the economic and legal implications of creating a digital currency central bank (CBDC).

Apart from requesting restrictions on cryptocurrency, the Estonian premier told Blinken visiting that all Russian or Belarusian banks should be removed form the Society for Worldwide Interbank Financial Telecommunications (SWIFT).

Kallas explained the reasons why Russia should be attacked and emphasized that:

We must keep our eyes on the prize [the]Russia is completely isolated from the outside world.

Elizabeth Warren’s Proposal

Since the beginning of Russia’s military action against Ukraine, the U.S. and EU have responded by removing some Russian banks from the SWIFT messaging system. Allies have also banned Russia from using the U.S. Dollar, the Euro, the British Pound and the Japanese yen.

Some in Europe and the U.S. continue to believe that cryptocurrency may be used to bypass sanctions by blacklisted Russian entities. According to U.S., these concerns led them to begin working on a draft. According to reports, Senator Elizabeth Warren started work on a draft which, if made law, would make it more difficult to circumvent sanctions with cryptocurrencies.

What are your thoughts on Prime Minister Kaja Kallas’ call? Comment below to share your thoughts.

Terence Zimwara

Terence Zimwara was a Zimbabwe author, journalist and writer who won the award. He is a prolific writer on the economic woes of African countries, as well as digital currencies that can be used to provide an escape path for Africans.