ECB President Calls for Stricter Cryptocurrency Regulation to Bar Potential Russia Sanction Evasion

President of the European Central Bank (ECB), Christine Lagarde, has called on the European Union (EU) to take on the task of stricter cryptocurrency regulations. Lagarde explained that this would restrict Russia from bypassing hefty monetary sanctions since it launched an invasion operation in Ukraine.

ECB President Remains Vocal on Cryptocurrency Regulation Warnings

Notably, the ECB has called on such actions multiple times before now. Now, the ECB chief argues that the EU has a pressing reason to act on cryptocurrency regulation, considering the slew of sanctions Russia has attracted.

The ECB President noted that such a policy is “critically important” and urged the European Parliament to act swiftly on the matter or risk Russia using the industry to evade monetary restrictions. Lagarde explained:

“There are always criminal ways to circumvent a prohibition, which is why it’s so critically important that MiCA is pushed through as quickly as possible, so we have a regulatory framework.”

That said, the European Union has been working on a crypto regulatory framework called ‘MiCA’ legislation (Markets in Crypto Assets) for several months now. MiCA is intended to regulate all digital currencies not regulated by existing regulations and will focus on three key areas, including asset-referenced tokens, e-money tokens, and other crypto assets.

Meanwhile, other EU members like Italy, Germany, and Spain have also called for strict supervision of the industry, citing the increasing use of crypto in money-laundering acts and other illegalities.

Meanwhile, another top official in a European financial organization, head of the French central bank François Villeroy de Galhau, has called for stronger laws in the crypto industry.

Last year, he argued that Europe’s monetary sovereignty and the position of the euro in the global financial space could be threatened if the crypto industry remains unregulated, noting:

“Whether it is digital currencies or payments, we in Europe must be ready to act as quickly as necessary or take the risk of an erosion of our monetary sovereignty.”