Bruno Le Maire has raised the issue of cryptocurrencies in the context of the Russian-Ukrainian conflict. The French Minister of Economy announced that the State would ensure that such assets are not used by the Russians to dodge economic sanctions. But is this really a strategy envisaged by Moscow?
Bruno Le Maire links cryptocurrencies and sanctions in Russia
It’s an idea we’re hearing a lot these days: that Russia might have a plan based on cryptocurrencies to dodge international sanctions. It has been picked up by several political figures, including French Economy Minister Bruno Le Maire.
He was speaking at the EcoFin summit, which brings together the finance ministers of European Union member states. Bruno Le Maire said:
“We will ensure that cryptocurrencies are not used to circumvent sanctions. “
When asked by a reporter about the nature of the measures taken in case of cryptocurrencies being used, he then clarified, “We can’t say yet [what measures], but we will rely on an ECB report on the subject.”
This is almost certainly the report that encourages the EU to validate the European MiCA regulation, which would apply a stricter framework to cryptocurrencies on a European scale. In practice, however, it is unclear how the rules laid down by this proposed regulation could get Russia into trouble.
An opportunity to regulate the sector
Based on what we know of Vladimir Putin’s apparent strategy, however, we can question a use of cryptocurrencies by Russia. As we explained yesterday, the country does not seem to be banking on such assets, and above all, it would seem that they are not suitable for dodging economic sanctions. It is precisely their transparency, and the ease with which transactions can be monitored, that would hold Russia back, among other reasons.
However, some commentators seem to be jumping at the chance to regulate cryptocurrencies more strongly. This is the case of Christine Lagarde, the president of the European Central Bank, who is historically very anti-crypto. On the subject of sanctions, she recently said:
There are always criminal ways of trying to avoid prohibition, that’s why it’s so important that MiCA is passed as soon as possible, so that we have a regulatory framework. “
The war in Ukraine could in any case accelerate things in terms of regulation, we invite you to watch our video on the subject to learn more:
Ukraine seems to be banking on cryptocurrencies, not necessarily Russia
Many commentators are forgetting, however, that if there is one country involved in this war that has chosen to use cryptocurrencies, it is Ukraine. Indeed, the government seems to have made it a key strategy, increasing address sharing for donations, as well as announcements to that effect. The country’s deputy prime minister has also put pressure on cryptocurrency exchange platforms, asking them to block all Russian users.
I’m asking all major crypto exchanges to block addresses of Russian users.
It’s crucial to freeze not only the addresses linked to Russian and Belarusian politicians, but also to sabotage ordinary users.
– Mykhailo Fedorov (@FedorovMykhailo) February 27, 2022
Has Russia also established a strategy based on these assets? For the time being, this is not clear, and there are no visible signs to support this theory. The sanctions on the Russian economy have proven effective: the rouble has fallen to an all-time low and the country’s central bank no longer has access to some of its foreign currency. So if the country had a cryptocurrency strategy, it should start to be visible.
