European Central Bank President Christine Lagarde said the legal status of digital currencies needed to be clarified as soon as possible so that Russia could not use its assets to circumvent the new sanctions.
According to the Kevin Telegraph, Lagarde has called on European lawmakers to adopt a specific regulatory framework for digital currencies. His request is likely that Russia will not be able to circumvent the new economic sanctions.
Lagarde told reporters at an informal meeting of European economy and finance ministers on Friday that the European Central Bank would “decisively and carefully” apply sanctions by European lawmakers against Russia. The sanctions were imposed in response to the country’s attack on Ukraine. Asked by reporters about the possible use of digital currencies by Russia to circumvent sanctions, Lagarde called on European lawmakers to agree to speed up the process of drafting the MiCA. MiCA is a plan to provide a specific regulatory framework for digital assets.
Lagarde said in an interview Friday.
Whenever there is a ban, sanction or mechanism for enforcing them, there are criminal ways to circumvent them. The implementation of the MiCA plan needs to move faster. Only then can we have a regulatory framework in Europe that can really control digital currencies.
The MiCA, or the Digital Currency Market Special Plan, offers a digital currency market monitoring framework that, in addition to supporting existing innovations, uses the potential of digital currencies to maintain countries’ financial stability and protect investors. The project was first presented to the European Commission in September 2020 (September 99) and then approved by the European Council in November 2021 (November). The bill was due to be put to a vote in the European Parliament on Monday.
However, Stefan Berge, a member of the European Parliament’s economic committee, announced on Friday that he had delayed the vote; This is because the scheme could be mistaken for a ban on extracting evidence-based digital currencies. No specific voting date has been announced so far.
On Thursday, US President Joe Biden announced that he would impose a series of sanctions aimed at creating “destructive costs” against Russia. The sanctions were imposed because of the country’s attack on Ukraine. Biden has announced that the United States and its allies will impose sanctions on Russia’s five largest banks. In addition, sanctions will be imposed on national figures who have “enriched themselves at the expense of the Russian government”. Interestingly, these sanctions do not include disrupting Russia’s access to the SWIFT payment system, as well as to digital currencies.
The situation in Ukraine is still unclear, but reports say large parts of Ukraine have been bombed after Russian President Vladimir Putin announced the start of the invasion on Thursday. A military airport near Kiev was also part of the area. It is worth noting that a number of members of the community of digital currencies have provided financial assistance to the Ukrainian army and local Ukrainian organizations.
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