With the significant escalation in crypto adoption on a global scale, the consequences of its use cases are turning into worldwide problems. The unique of such situations is the global catastrophe of the Russian invasion of Ukraine which has resulted in new debates over the requirement for adequate regulation over the asset class industry. During some of the recent days, Russia has invaded Ukraine due to several reasons in which one deals with its attempt to become a part of NATO.

Required crypto regulatory agenda

While responding to the respective move of Russia, which is being criticized on a worldwide scale, European Union and many other nations have implemented strict economic sanctions over the invader.

Nevertheless, there may not be some extensive impact of the respective sanctions on Russia as is expected due to the possibility that the government of the country may utilize crypto funds to escape them. Keeping this in view, Christine Lagarde – the ECB (European Central Bank)’s President – has persuaded lawmakers to form a regulatory agenda for cryptocurrencies.

She invited for such measures on Friday while answering a question asked on the behalf of a reporter, at a casual meeting of finance and economic ministers,  regarding the potential of Russia to utilize crypto in preventing a few of the enacted measures. She asserted that the European Central Bank would be in line with the implementation of all the sanctions that the European lawmakers have executed over Russia.

Crypto assets: a way to evade sanctions?

Nonetheless, the president of the prominent bank acknowledged that any kind of restrictions implemented on Russia can be evaded with the utilization of crypto assets and therefore she recommended that the lawmakers should enhance the present regulatory agenda dealing with crypto. She added that all of the prohibitions or bans imply a restriction or boycott and some criminal methods are always open to permit for the evasion of such ban or restriction.

She moved on to suggest that MiCA (Markets in Crypto Assets) should comprehensively be forced to abide by the unique proper regulations through which the relevant authorities could seize the crypto assets. The MiCA is known as a regulatory agenda supporting innovation along with focusing on crypto assets to protect investors as well as maintain financial stability. The respective framework was initially introduced in 2020’s September to the European Commission.