President of the European Central Bank Christine Lagarde seeks to put a leash on cryptocurrencies to prevent Russia’s evasion of sanctions.
With some regulatory frameworks threatening the very existence of digital assets, other regulations are mandatory to keep the market transparent and protected from malicious activity.
According to a report by Bloomberg, the President of ECB Christine Lagarde is eager to regulate cryptocurrencies in the EU so that Russia is unable to dodge sanctions that affect the economy.
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With regulators still working on the Markets in Crypto Assets, or MiCA rulebook, there have been only six members of the EU who were looking to implement the legislation on crypto assets.
The legislation aims to tackle money laundering through crypto, but it is being pushed forward due to the situation in Eastern Europe. In fact, Italy has already proposed its own rule set for crypto service providers. However, even though the country’s regulations are closely related to the MiCA legislation, Italy will only allow foreign exchanges to operate locally if they have an establishment within the country.
Meanwhile, the ECB President highlights how there will be ways to "circumvent a prohibition, which is why its so critically important that MiCA is pushed through as quickly as possible so we have a regulatory framework."
If the regulatory framework goes through, then this will heavily affect the Russian people amidst the falling price of the Ruble. That is because, according to a report, Russia holds 12% of all circulating cryptocurrencies in the market.
