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The European Central Bank (ECB) warns cryptocurrencies are being used to evade sanctions by Russians. ECB President Christine Lagarde warns crypto firms against becoming \u201caccomplices\u201d in the crime. Christine Lagarde, president of the European Central Bank (ECB), said Tuesday at the Bank for International Settlements (BIS) Innovation Summit that cryptocurrencies are \u201ccertainly\u201d being used by Russian firms and individuals to bypass sanctions. A growing number of countries have levied heavy sanctions against Russian entities after Russia began its invasion of Ukraine<\/a>.<\/p>\n Expressing concerns over crypto\u2019s continued use, the ECB chief said:<\/p>\n They are certainly being used as a way to try to circumvent the sanctions that have been decided by many countries around the world against Russia.<\/p>\n<\/blockquote>\n \u201cA specific number of players, either individuals or corporates, are obviously trying to convert their rubles into crypto assets,\u201d she added, noting that there are rising volumes of transactions going from the ruble to stablecoins and from stablecoins to other digital assets.<\/p>\n The ECB president proceeded to warn crypto firms against becoming accomplices in the crime, stating that in Europe:<\/p>\n We have taken steps to clearly signal to all those who are exchanging, transacting, offering services in relation to crypto assets that they are being accomplices to circumvent sanctions.<\/p>\n<\/blockquote>\n While Lagarde is certain about cryptocurrency being used to evade Russian sanctions, many experts have said that crypto is not an effective tool for this purpose, including the CEOs of blockchain analytics firm Chainalysis and crypto exchange Coinbase<\/a>.<\/p>\n In addition, a senior official with the U.S. Treasury Department said<\/a> last week that cryptocurrency could not be used in a large-scale way to evade sanctions. FBI Director Christopher Wray similarly said <\/a>that Russia\u2019s ability to circumvent sanctions with cryptocurrency is \u201chighly overestimated.\u201d Carol House, the director of cybersecurity for the National Security Council, also said that crypto is an ineffective tool for circumventing sanctions.<\/p>\n However, Lagarde is not the only one who is worried about cryptocurrency being used to bypass sanctions. In the U.S., Senator Elizabeth Warren is deeply concerned; she introduced a crypto sanctions compliance bill<\/a> last week that has been described by an industry expert as \u201cunnecessary, overbroad, and unconstitutional.\u201d<\/p>\n
<\/strong><\/p>\nECB President Lagarde Is Certain About Crypto Being Used to Evade Russian Sanctions<\/h2>\n
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