Christine Lagarde, the president of ECB, has not shown a friendly demeanor towards the cryptocurrency industry. However, recently she directed the attention of the EU financial stakeholders towards the need for cryptocurrency regulations in the bloc. The recent impression around the nascent digital market is that it will play an important role in shaping up world economic affairs presently.
The world is currently looking intently at the political and financial outcome of the ongoing Ukraine and Russian conflict. Meanwhile, the Russian president has started to welcome cryptocurrency miners and introduce friendly legislation in the country. Lagarde recently told the media that there is a strong possibility that Russia will be able to bypass financial sanctions by the USA and NATO alliance with the help of cryptocurrencies.
Crypto Regulations will Counter Russia’s Invasion of Ukraine
Lagarde emphasized the importance of cryptocurrency regulations claiming that it will help allow the western bloc to cut through some of the financial immunity that digital assets have granted Russia. She further noted that banning and exodus are not viable options since legal and technical aspects always allow the proponents to find alternatives.
Lagarde postulated that MiCA or Markets in Crypto Assets could be contained and regulated by a specified and targeted legislative attack. A few months ago, Lagarde seconded the opinion of the US Treasure Secretary about cryptocurrencies being used as a tool by criminal syndicates and rogue government operations funding.
With the current size and international exposure of cryptocurrencies, the central banking institutions and governments can’t ignore the industry anymore. However, with the presence of heavy regulations, the promise of decentralization will disappear from networks like Bitcoin. The main attraction for blockchain projects for the masses is its ability to operate without any regulatory framework.
The involvement of frameworks like MiCA, NATO, and the USA will make the cryptocurrency industry face many challenges. Following the invasion of Ukraine by Russia, the price of Bitcoin cascaded. However, the top coin has managed to recover back to $40K for now. The crypto industry is standing at a turning point at present.