Regulators are keeping an eye on Russia's use of cryptocurrency to avoid Western sanctions.

Financial regulators around the world are keeping a close eye on Russian interests' use of crypto assets to evade Western sanctions.

Crypto companies, according to US and European lawmakers, are incapable of adhering to Western financial sanctions.

If some crypto exchanges refuse to cut off all Russian customers, there are concerns that crypto could be used to circumvent sanctions.

Ukraine has also raised more than $100 million (€90 million) in cryptocurrencies after appealing for donations in bitcoin and other digital currencies on social media.

Patrick Armstrong, a member of the Financial Stability Board's (FSB) secretariat, said, "We at the FSB are monitoring the situation."

According to Reuters, the European Union confirmed on March 9 that sanctions on loans and credit to Russia include crypto assets in order to close any potential loopholes.

"We think that these steps will actively support the government’s response to Russia’s invasion of Ukraine," said John Glen, the British minister of financial services.

Mr Glen also stated that the UK government is still debating whether additional rules for blockchain, which supports crypto assets, are required.

"We are not finished with crypto," said David Raw, a policy official at the Financial Conduct Authority in the United Kingdom.

By fLEXI tEAM