Over the course of recent time, there has been seen harsh word exchange between Russia and Ukraine, which led both countries into war. A few days ago, Russia attacked Ukraine due to different reasons; continuous attempts to join NATO are also one of the reasons. This Russian attack has been condemned internationally; many countries such as the European Union have decided to impose strict financial sanctions on Moscow. However, these sanctions cannot affect Russia in the long term because the government could probably use cryptocurrency assets as a solution to these sanctions.
The current international crisis has started a discussion about crypto and made the world think about the need for cryptocurrency regulation. After this critical situation, the European Central Bank’s president Christine Lagarde wanted to regulate crypto, and for this purpose, she urged the team of lawmakers to work on the regulatory structure of cryptocurrency and approve it as soon as possible.
An informal meeting was arranged on Friday in which ministers of economics and finance participated. In this meeting, Lagarde made this call while responding to a reporter’s question about Russia’s possible use of cryptocurrencies to avoid these measures. She shared the reality that the European Central Bank would decide the implementation of any sanction latterly which European legislators imposed on Russia.
However, president Lagarde accepted that the country could use digital assets to prevent any kind of sanctions imposed on it. Seeing this situation, the ECB president called on the legislators to work on the improvement of the existing cryptocurrency regulatory structure.
While expressing the ECB president told that there is always a system of ban or prohibition, but this is unfortunate illegal ways also exist that are used to prevent these bans. Moreover, she clarified that it is very important to promote the market in cryptocurrency assets quickly so that there should be a regulatory structure within which cryptocurrency assets really can be seized.
The MiCA regulatory structure provides support to modernization and ties the capability of cryptocurrency assets that preserve fiscal stability and defends investors. Firstly, in Sep. 2020 this proposal was adopted by the European Commission and later in Nov. 2021 by the European Council. European Parliament decided to vote on this proposal on Monday, but this voting was postponed because there is the possibility that the vote might be miscalculated which means a sanction on proof of work cryptocurrency mining, according to Stefan Burge.
