EU economy and finance ministers met on Wednesday to discuss Russian sanctions and the possible use of cryptocurrencies by Russia to sidestep them following its invasion of Ukraine, reports CoinTelegraph.
Cryptocurrencies have long been touted for their decentralized nature being a way to work around central banks and established financial institution, but this is one of the first major geopolitical conflicts to focus on the use of crypto assets as a way to bypass sanctions by a country and its institutions. French finance minister Bruno Le Maire spoke after the EU video conference, explaining that international lawmakers had already frozen a sizable portion of assets in Russia’s central bank.
Concerns around the use of cryptocurrencies by Russia had the 27 member states within the EU agreeing that extra measures needed to be taken to keep Russia from bypassing the sanctions enacted as punishment for its invasion and war on Ukraine.
“We are taking measures, in particular on cryptocurrencies or crypto assets, which should not be used to circumvent the financial sanctions,” said Le Maire. “We will be taking stock on a daily basis with regard to the implementation of these sanctions, their effectiveness and any additional measures which may be needed. When it comes to economic and financial sanctions, we want to remain flexible and mobilized.”
The German finance minister seconded the comments and added that individuals and institutions named specifically within the sanctions should be prevented from converting money into crypto assets. It’s a big step and has pushed forward the importance of creating regulatory frameworks for crypto by many countries, including within the EU itself as well as the U.S. The sanctioning and crackdown on cryptocurrencies from specific sources could help to prove to U.S. lawmakers that regulation can be done and that bad-faith players can be kept out of the mix when it comes to cryptocurrencies.
Investing in Crypto’s Potentials With Invesco
For investors looking to invest in the possibilities within the crypto economy and the innovators within the space, Invesco provides two different funds. The Invesco Alerian Galaxy Crypto Economy ETF (SATO) invests across the crypto industry in a variety of crypto-related categories and across all market caps within developed and emerging markets. By investing across a range of crypto assets, investors can capture potential within the space while also mitigating the risk compared to a singular spot exposure.
The fund seeks to track the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts and ETPs Index, which is divided into two different security types: digital asset companies that are engaged in cryptocurrency or the mining, buying, and enabling technologies of cryptocurrency; and exchange traded products (ETPs) and private investment trusts traded over-the-counter that are associated with cryptocurrency.
SATO does not invest directly in bitcoin, cryptocurrencies, crypto assets, or in initial coin offerings or futures contracts for cryptocurrencies, and it is non-diversified. SATO carries an expense ratio of 0.60%.
For investors looking for an opportunity to gain exposure to crypto’s growth, the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC) offers investment in the blockchain innovation making it all possible. The fund is based on the Alerian Galaxy Global Blockchain Equity, Trusts, and ETPs Index.
BLKC invests in companies that are developing blockchain, mining cryptocurrency, buying cryptocurrencies, or else enabling technologies, exchange traded products (ETPs), or private investment OTC trusts tied to cryptocurrency.
The fund does not invest directly in cryptocurrencies or crypto assets and does not invest in initial coin offerings or futures contracts on any cryptocurrencies. It carries an expense ratio of 0.60%.
Both ETFs carry Galaxy Digital in their holdings.
For more news, information, and strategy, visit the Crypto Channel.