Global financial regulators have confirmed they are closely monitoring the role of crypto assets amid the conflict between Russia and Ukraine.
The Financial Stability Board – an organisation which represents central banks and finance ministries from across the Group of 20 economies – revealed it is sharing information among its members concerning the illicit use of crypto, Yahoo news first reported. The move comes after multiple financial watchdogs, including the UK’s Financial Conduct Authority and Bank of England, raised concerns that digital assets are being used by Russians to evade sanctions.
“We at the FSB are monitoring the situation, the conflict situation relative to cryptos,” commented Patrick Armstrong of the FSB at a financial conference in London.
John Glen, Britain’s financial services minister, was also in attendance at the conference and laid out the steps taken by the UK to bring crypto under anti-money laundering and terrorist financing rules. Glen added that the UK government is mulling new rules on blockchain technology which underpins many crypto assets.
“We think that these steps will actively support the government’s response to Russia’s invasion of Ukraine,” he said.
While crypto risks undermining the sanction regime levelled against Russia, it has also proved a boon for Ukraine amid the crisis. Ukraine’s government and NGOs have raised more than $100m in crypto after posting appeals on social media for donations for military and humanitarian needs amid the Russian invasion.