Italy publishes new AML rules for VASPs operating within the country’s borders.
Galaxy Digital Research: Russian invasion. The Russian invasion of Ukraine has taken center stage. With heavy fighting ongoing and Ukrainians mounting a staunch defense under the courageous leadership of President Volodymyr Zelensky, Ukraine is now seeking emergency admission into the European Union. Russia’s advances in Ukraine are ongoing, but appear much slower than expected. Belarus has announced it will send its own reinforcements to support Russia, while Russian ally Kazakhstan refused. Russia has offered to create a humanitarian corridor to allow evacuations from Kyiv, perhaps a sign of a forthcoming onslaught on the capitol. Germany, meanwhile, has broken with longstanding policy and will send weapons to Ukraine and dramatically increase its military spending. Finland, which has been historically neutral, is also sending weapons to Ukraine, and its ambassador to the US said on Bloomberg TV late this morning that there is “far more support” internally for joining NATO and those discussions “have become more active.” Ukrainian and Russian diplomats met on the border with Belarus today with no concrete outcome except that both sides agreed to hold more talks soon. Russia’s willingness to hold talks only 4 days after launching its invasion is perhaps a sign of growing frustration on Moscow’s part. With sanctions tightening, including on its central bank, Russia could become more aggressive in the near term. The strength of the pushback by both Ukrainians and western nations, which appear more cohesive than ever on the security question, suggests Russia may have committed a major miscalculation, regardless of the outcome on the ground. Moscow may yet seize Kyiv, but with transatlantic and European opposition more cohesive than ever, you can't help but ask: at what cost?