Cryptocurrency companies have been informed they must step up their efforts to enforce sanctions on Russia over concerns that digital tokens are being used to sidestep measures.
CryptoUK, the British industry body, has allegedly written to companies urging them not to become “a loophole for sanctioned Russians,” with the Financial Conduct Authority (FCA) saying it was “actively monitoring” cryptocurrency brokerages.
The FCA, Treasury and MPs have all allegedly held talks with cryptocurrency representatives, while Washington is believed to be considering new measures to stop oligarchs diverting their assets into crypto.
Bruno Le Maire, the French finance minister, also said that EU sanctions include cryptocurrencies.
A spokesperson for the FCA said, “We have made it clear to crypto firms, banks and others that we expect them to focus on their sanction controls and, with our partners, we will be supervising their actions.”
Binance boss Chanpeng Zhao told BBC Radio 4 however, that the largest cryptocurrency exchange has no plans to suspend Russian citizens from using its services.
Zhao added, “We differentiate between the Russian politicians who start wars and the normal people, many normal Russians do not agree with war.”
The pleas for banning Russian users have come as rumours circulate oligarchs and those facing sanctions are using the blanket of anonymity provided by cryptocurrency to store value and circumvent economic punishments.
The price of Bitcoin has risen 23% in the week since Vladimir Putin started his invasion of Ukraine, with Ruble denominated Bitcoin trading surging to a nine-month high on Monday.