The European Union and G7 are looking at ways to prevent Russia from using cryptocurrency to avoid sanctions. “We should take measures to prevent listed persons and institutions from switching to unregulated crypto assets,” said Germany’s minister of finance.
G7, EU Want to Prevent Crypto Use To Evade Sanctions
The Group of Seven (G7) nations are reportedly examining ways to stop individuals and companies from using cryptocurrencies to circumvent Western sanctions following Russia’s invasion of Ukraine. Canada, France and Germany are all part of the G7.
Finance ministers and central bank governors of the G7 countries held virtual meetings this week together with Ukraine’s Finance Minister Serhiy Marchenko. Germany’s minister of finance, Christian Lindner, was quoted by AFP as saying Wednesday:
It is important to take steps to stop listed institutions and persons from using unregulated crypto assets. In the context of Germany’s presidency of G7, we work towards this.
“The problem is known and we are working on it,” Lindner said in an interview with Welt TV on Wednesday. He explained that “It’s about maximally isolating Russia at all levels” and having a “maximum ability to sanction,” which he said includes crypto.
U.S. Treasury Department said this week it continues to monitor Russian attempts to use cryptocurrency to circumvent sanctions. “We will continue to look at how the sanctions work and evaluate whether or not there are leakages, and we have the possibility to address them,” said Treasury Secretary Jenet Yellen.
Since the invasion of Ukraine, a growing number of nations and organisations have placed sanctions against Russia. Some of these sanctions are aimed at removing certain Russian banks from SWIFT’s messaging system and putting them in isolation from the rest.
The 27 EU countries have imposed four sanctions packages on Moscow, including freezing Bank of Russia’s assets and disconnecting seven Russian banks from the SWIFT financial-messaging system.
Following a meeting between EU finance ministers this week, Bruno le Maire (French Finance Minister) confirmed that the European Union would include cryptocurrency as part of its sanctions against Russia. He addressed a news conference.
We take measures in order to prevent cryptocurrencies and crypto assets from being used for financial crimes.
The French finance minister added that the sanctions against Russia have been very effective, stating that it has disorganized the Russian financial system and paralyzed the Bank of Russia’s ability to protect the ruble. Over 30% of the Russian currency lost this week.
How do you feel about the European Union and G7 trying to stop Russia using crypto currency to evade sanctions? Comment below.
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