Regulators Monitor Use of Cryptocurrency in Russian-Ukrainian War

The global Financial Stability Board (FSB) is monitoring the use of cryptocurrencies in Ukraine over concerns that they can be used to evade sanctions imposed on Russia.

“We at the FSB are monitoring the situation, the conflict situation relative to cryptos,” Patrick Armstrong from the FSB’s secretariat told a business conference.

Lawmakers from Western nations had warned that companies of digital assets may not be willing to comply with financial sanctions imposed on Russia over its invasion of Ukraine. Most cryptocurrencies can be used to continue transactions despite sanctions since they are decentralized and resistant to national boundaries.

Some major crypto exchanges have refused Ukraine’s request to ban Russian traders as part of an international boycott, arguing that the move would go against the very reason that cryptocurrency exists.

Ukraine had recently passed a law that creates a legal framework for cryptocurrencies in the country after donations through digital assets flooded in.

John Glen, Britain’s financial services minister, told the same conference that the U.K. is actively taking steps to add anti-money laundering and terrorist financing policies to regulate the cryptocurrency industry.

“We think that these steps will actively support the government’s response to Russia’s invasion of Ukraine,” Glen said.

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