Tech Talk: Crypto industry on defensive as Ukraine crisis spotlights Russia sanctions compliance – Gulf Digital News

Tech Talk: Crypto industry on defensive as Ukraine crisis spotlights Russia sanctions compliance – Gulf Digital News

Cryptocurrency evangelists are on the defensive amid warnings from US and European lawmakers that digital asset companies are not up to the task of complying with Western sanctions imposed on Russia following the country’s invasion of Ukraine.

The criticism has seen the crypto industry scrambling to regain control of the narrative, with many executives frustrated that the compliance regimes in place at leading exchanges, such as Coinbase and Binance, are being called into question.

At the same time, the increased scrutiny could be a pivotal moment for the sector to prove that it is not the "Wild West" of finance that regulators have painted it to be.

"It's an opportunity for the industry to show that it is mature and that it knows how to properly manage risk," said Matt Homer, an executive in residence at venture capital firm Nyca Partners.

The crypto community was largely caught flat-footed as the United States and its allies moved to impose sweeping sanctions against Russia's banks, elites and other state firms.

Unlike other payment companies, crypto exchanges have rejected calls to cut off all Russian users, saying that goes against the industry's libertarian values, sparking concerns among European officials and US lawmakers that digital assets could be