Technology
Global regulators monitor cryptoassets use in Ukraine war
Some crypto exchanges have rejected calls to cut off all Russian users, raising concerns that crypto could be used as a way to circumvent sanctions
LONDON, March 21 (Reuters) - Global financial regulators are closely scrutinising the use of cryptoassets during the war in Ukraine after concerns they could be used to evade Western sanctions on Russia.
The $1.8 trillion crypto sector is on the defensive amid warnings from U.S. and European lawmakers that digital asset companies are not up to the task of complying with Western financial sanctions imposed on Russia following the country's invasion of Ukraine.
Some crypto exchanges have rejected calls to cut off all Russian users, raising concerns that crypto could be used as a way to circumvent sanctions.
Ukraine has also raised more than $100 million in cryptocurrencies after posting appeals on social media for donations for military and humanitarian needs in bitcoin and other digital tokens.
"We at the FSB are monitoring the situation, the conflict situation relative to cryptos," Patrick Armstrong, a member of the Financial Stability Board's (FSB) secretariat, told a City & Financial conference in London.
The FSB, which groups financial regulators, central banks and finance ministry officials from the Group of 20 economies, is sharing the information it obtains among its members, Armstrong said.
The European Union on March 9 issued guidance to confirm that sanctions on loans and credit to Russia include cryptoassets, in a bid to close potential sanctions loopholes.