President of the European Central Bank Christine Lagarde has called for swift regulation of cryptocurrencies in the EU, citing the possibility for Russia to exploit them to circumvent recent economic sanctions. During an informal meeting of economy and finance ministers on Friday. So, Lagarde told reporters that lawmakers needed to act fast to regulate the burgeoning asset class.
She also stated that the European Central Bank (ECB) would strictly enforce EU sanctions on Russia as a result of the latter’s invasion of Ukraine.
Lagarde’s remarks come only hours after EU legislators postponed a crucial vote on planned crypto legislation. There, citing fears that the package would include a prohibition on proof-of-work coins.
The MiCA plan, or Markets in Crypto Assets, is part of a bigger digital finance reform package by EU legislators. It was first proposed in 2020 and approved by the European Council in late 2017.
The bill’s implementation was set to be voted on by lawmakers next week.
In the wake of recent sanctions against Russia’s largest banks, speculation has grown that the country may turn to cryptocurrency.
So, Russia has the potential to become a crypto powerhouse, thanks to broad crypto adoption. Then, and recent regulatory actions seeking to recognize the asset class.
Bitcoin mining has also exploded in popularity in the country, thanks to plentiful electricity and a frigid climate.
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