The global Financial Stability Board is closely monitoring the usage of crypto assets during the Ukrainian conflict, amid concerns that they could be used to circumvent Western sanctions against Russia.
The crypto sector is on the defense as US and European politicians warn that digital asset companies are not up to the challenge of complying with Western banking sanctions imposed on Russia following its invasion of Ukraine.
Some cryptocurrency exchanges have rejected proposals to block all Russian users, increasing concerns that cryptocurrency may be used to bypass sanctions.
Ukraine has also raised millions of dollars in cryptocurrency after making social media requests for bitcoin and other digital token donations.
"We at the FSB are monitoring the scenario, the conflict situation in relation to cryptos," said Patrick Armstrong, a member of the FSB's secretariat, at a City & Financial conference.
The FSB, which includes financial regulators, central bankers, and finance ministry officials from the Group of 20 economies, is disseminating information to its members, according to Armstrong.
Britain's financial services minister, John Glen, said at the same conference that actions the UK has already done to bring crypto assets under anti-money laundering and terrorist financing controls will help law enforcement in crypto assets.
"We believe that these initiatives will help the government respond to Russia's invasion of Ukraine," Glen added.
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