Crypto a threat; Russia circumventing sanctions via crypto: Christine Lagarde

Christine Lagarde, Managing Director of European Central Bank (ECB) said cryptocurrencies are a cause of concern and said that they “remain a threat”.

While speaking at the Bank for International Settlements’ Innovation Summit on Tuesday, Lagarde also called out cryptocurrency service providers. She said they have been acting as an "accomplice" to Russia in avoiding sanctions imposed on the country by nations across the world in solidarity with Ukraine.

Lagarde highlighted that the amount of Russian rubles invested in Bitcoin and stablecoins has been increasing.

It is noteworthy to mention that Business Today has previously reported that trading volumes between the Russian ruble and Bitcoin have increased to a nine-month high, despite the fact that the country's fiat currency has fallen to record lows against the dollar in the aftermath of Russia’s invasion of Ukraine in late February. Regulators from across the world have imposed severe sanctions on Russia in an attempt to isolate their economy.

Moreover, Lagarde's also implied that crypto assets are often involved with financial criminality.

"So is it a threat? Yes. Has it … been a threat in the past? Yes, because when you look at a lot of the dubious transactions that are taking place, a lot of the criminal activities payments that are taking place, very often you find some crypto assets,” she said.

Also important to mention that the EU's complex legislative framework for crypto, Markets in Crypto Assets (or better known as MiCA), is being debated in the EU Parliament.