Russia avoiding sanctions via cryptocurrencies - Mission Impossible
Source: yalcinsonat/Adobestock
I have recently written about the situation regarding Russia, cryptocurrencies, and sanctions. One of the main points is that Russia cannot use crypto in order to avoid sanctions partly because there is not enough money in the overall crypto-market globally that could provide enough support to the Russian government. Also, the Ukrainian government is enjoying more support among cryptocurrency communities such as Polkadot andTezos, and among many individual users of Ethereum and Bitcoin.
When it comes to discussions about Russia, sanctions, and crypto, here are some interesting news and insights:
By Aidan Arasasingham and Gerard DiPippo via Center for International and Security Studies
Crypto trading volumes between rubles and the two most liquid cryptocurrencies—bitcoin and tether—have more than doubled since February 24. However, the value of these transactions remains in the tens of millions of dollars per day. In the second half of 2021, Russia’s imports averaged more than $900 million per day. The relatively small volume of crypto being purchased using rubles suggests that ordinary Russians are trying to get rid of their rubles. Total crypto trading volumes on all exchanges worldwide averaged about $24 billion in February, compared to the $5 trillion per day in transactions over SWIFT, the financial messaging system from which major Russian banks are now banned.
Cointelegraph - Japan vs Russia
Japan became the latest country in Asia to call cryptocurrency firms to comply with sanctions against Russia, requesting on Monday that they not process crypto transactions involving sanctioned individuals or entities in Russia and Belarus.
The Japanese Financial Services Agency (FSA) and the Ministry of Finance issued a joint statement on sanctions against Russia, stressing that crypto is part of the restrictions and any crypto assets identified to be related to sanctions should be frozen.
The Economist - Sanctions-dodgers hoping to use crypto to evade detection are likely to be disappointed
Russia’s invasion of Ukraine and the West’s subsequent sanctions on Russian banks, companies and elites appears to turn on its head the debate about whom crypto helps and hurts. Though politicians and regulators in America and Europe at first feared that people and entities hit with sanctions would use cryptocurrencies to dodge the restrictions, little evidence of such activity has materialised. Instead, crypto institutions appear to be under the thumb of governments, too. And there has been a huge surge in crypto donations to help the government in Ukraine.
Via Bitcoin.com - G7 Committed to Ensuring Russia Cannot Evade Sanctions Using Crypto
The G7 leaders noted that this “will further limit their access to the global financial system.” They stressed, “It is commonly understood that our current sanctions already cover crypto-assets.”
We commit to taking measures to better detect and interdict any illicit activity, and we will impose costs on illicit Russian actors using digital assets to enhance and transfer their wealth, consistent with our national processes.
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