EU taking measures on crypto use in circumventing Russian sanctions

ANKARA

The EU is taking measures on cryptocurrencies that are used to circumvent sanctions on Russia, French Minister of the Economy, Finance and the Recovery, Bruno Le Maire, said Wednesday.

He said the effectiveness of European sanctions has caused significant disruption in the Russian financial system, particularly the removal of seven major Russian banks' operations from the Society for Worldwide Interbank Financial Telecommunication, known as SWIFT, a global financial transactions and payments system used between banks worldwide.

"This has also led to paralysis of the Russian central bank. We managed to localize and freeze a significant amount of assets," he said during a video conference of European economy and finance ministers.

"We have decided in addition to work on supplementary measures to increase further the effectiveness of these sanctions, and to avoid any circumvention of the measures decided by the 27 member states," he said. "We are taking measures particular on cryptocurrencies. Crypto assets should not be used to circumvent the financial sanctions.”

Led by Bitcoin, the crypto market has seen more than 15% increase in value since late Sunday -- the day after US and its allies agreed to remove certain Russian banks from SWIFT.

Many crypto analysts believe that Russian oligarchs could have headed to cryptocurrencies to evade the sanctions.

Le Maire said Europe is also extending sanctions to Belarus.

He said sanctions will be monitored on a daily basis with regard to their implementation, effectiveness and any additional ones if they are needed.

"We want to remain flexible and mobilized," he noted.