G7 Says Cryptocurrencies Are Part Of Sanctions Against Russia

G7 Says Cryptocurrencies Are Part Of Sanctions Against Russia

The Group of Seven (G7), which unites the richest countries, issued a statement against Russia (11) last Friday, reaffirming that cryptocurrencies are part of the sanctions.

The G7 is made up of the United States, Japan, Germany, the United Kingdom, France, Italy and Canada, and occasionally meets as the G8 and thus counts on the presence of Russia. However, the latter should take longer to converge with recent issues.

And this group is closely monitoring the Russian invasion of Ukraine, citing the case of an unjustified war causing suffering among the Ukrainian people.

What does the G7 say about the cryptocurrency sanctions imposed on Russia?

By banning cryptocurrency transactions, no country can do this due to the decentralized nature of the technology. However, brokers are banning Russian clients and their transactions, this is entirely possible and has happened in recent weeks after Russia invaded Ukraine.

Last Friday, the group issued a press release, also shared by the US White House, saying that support for the government and people of Ukraine continues, citing the case of Vladimir Putin’s military aggression.

And in the public letter, the G7 urges Putin to send humanitarian aid to those in need and to allow civilians to leave the country. Humanitarian, financial and medical aid to refugees was promised by the bloc countries.

In addition, seven measures against Russia were announced to be taken by the G7, the first being measures to deny Russia most favored nation status. Second, to ensure that Russia is no longer able to get easy financing from the IMF, the World Bank, among others.

The third measure is to ensure that Russian elites are put under pressure, especially those closest to Putin. And in the fourth point, the G7 mentioned cryptocurrencies, stating that this technology is part of the sanctions against Russia, which should fill any gaps in financial support.

Fourth, we are committed to maintaining the effectiveness of our restrictive measures, tackling evasion and closing loopholes. In particular, among other planned measures to prevent evasion, we will ensure that the Russian state and elites, prosecutors and oligarchs cannot use digital assets to avoid or offset the impact of international sanctions, limiting their access to the system world finance. It is common knowledge that our current sanctions already apply to cryptocurrencies. We commit to take steps to better detect and prohibit any illegal activity and impose charges on illegal Russian actors who use digital assets to increase and transfer their wealth, in accordance with our national processes

Will the war in Ukraine accelerate industry regulation?

As the conflict in Ukraine draws attention to the topic of cryptocurrencies around the world, several countries such as the United States and Europe have already stated that the sector will be regulated.

In the US, the term risk appears 47 times in Joe Biden’s cryptocurrency executive order released in recent days.

Source: Live Coins