CEO Of London Stock Exchange Group Says Unsanctioned Crypto Exchanges Are Risking Their Reputation

David Schimmer, head of LSEG and David Schimmers, Hollywood actor. (photo: twitter @DavidSchwimmer)

JAKARTA – Cryptocurrency exchanges are risking long-term damage to their industry by remaining in Russia as Western governments seek to isolate Moscow. This was said by the Head of the London Stock Exchange Group on Wednesday, March 16. He called it "an important moment."

Unlike payment companies, most cryptocurrency exchanges have rejected calls to cut off all Russian users. It has also sparked concern among European officials and US lawmakers that digital assets could be used to evade sanctions the United States and Europe have imposed on Moscow, following its invasion of Ukraine.

“Crypto exchanges face “crossroads” in terms of embracing the ideology of independence from regulation or aligning more closely with the global financial system, which emphasizes the need for a transparent regulatory and framework,” said David Schwimmer, CEO of LSEG.

"If the industry is seen as a bad actor ... on implementing, or evading, sanctions in relation to what happened with Russia, I think it will have a long-term impact in terms of how the industry runs," he said at a conference organized by the Association. Futures Industry in Boca Raton, Florida.

Several cryptocurrency companies, in fact, have complied with Western sanctions by stopping or even freezing the assets of Russian entrepreneurs. But there are also crypto exchanges like Binance that are not complying with Western sanctions calls.