Cryptocurrencies Used in Ukraine War: How Regulators Are Monitoring the Situation
Francois Moreau | Apr 24, 2022 15:03
The brutal war in the Ukraine is at the top of everyone’s mind these days. From concerns about the expansion of the war to further disruption of a supply chain already in disarray due to the COVID pandemic, the conflict significantly impacts people’s daily lives.
However, given the dire humanitarian issues in the conflict, it is somewhat surprising that cryptocurrency has become a major issue during the war. More than $100 million in cryptocurrency donations have made their way to Ukrainian forces. But Western governments are concerned that Russia may be using cryptocurrency to evade the severe financial sanctions the world has imposed.
Extensive cryptocurrency use by both sides of the conflict has again highlighted the general lack of cryptocurrency regulation. But with it becoming ever more apparent that cryptocurrency is here to stay and will be a significant player in financial markets, world governments are racing to put regulations in place.
Why is there only limited cryptocurrency regulation?/h2
Contrary to popular belief, cryptocurrency regulations do exist. Many countries have put regulations, restrictions, or flat-out trading bans in place. But like those countries, the regulations are all over the map.
There are a few reasons that cryptocurrencies have achieved sky-high valuations (the total crypto market is Executive Order on Ensuring Responsible Development of Digital Assets ” with the goal of creating a comprehensive regulatory framework for crypto. Many other countries are in similar investigatory stages.
Conclusion/h2
There is no question that widespread cryptocurrency regulation is coming. The war has only hastened its arrival. The form it will take remains an open question. And while much of the crypto community is supportive of reasonable regulation, there remains a strong tension between regulation and the goals of cryptocurrency. How that tension will be resolved will be a storyline to watch.
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