Latest News

Can Russia Use Cryptocurrency To Avoid US Sanctions?

Following President Joe Biden’s announcement of tougher sanctions against Russia on Thursday, speculation grew as to whether crypto transactions could enable Russia circumvent US financial restrictions.
Biden announced sanctions against Russia’s two largest banks as well as the country’s affluent elites. While the move effectively excludes them from the US financial system, cryptocurrency may provide a viable alternative.

He did not, however, prohibit Russia’s access to the SWIFT network, a major cross-border financial system. Russians still have access to the international banking system. Biden did not discuss whether crypto could circumvent sanctions in his remarks last night.

According to a Bloomberg article, banned Russians could utilize cryptocurrency to circumvent US economic sanctions. Governments currently have no way of prohibiting non-custodial cryptocurrency wallets.

The adoption of cryptocurrency could potentially mitigate the effects of recent sanctions.

More than 30 wallets linked to the trucker-led “Freedom Convoy” were recently blocked by the Canadian government, which used emergency powers. However, those wallets were all held in trust, and government regulation could only go as far as crypto-to-fiat exchanges.

Nonetheless, the crypto community slammed Canada’s decision. Crypto advocates also urged users to switch to non-custodial wallets in order to evade regulation.

In Russia, cryptocurrency acceptance is also rapidly increasing. According to the authorities, Russians own at least $200 billion in cryptocurrency, accounting for 12% of the total market. The Finance Ministry recently proposed a measure to recognize and regulate cryptocurrency as a traded asset in the country. The Central Bank, on the other hand, is in opposition to this move.
Related Posts – Ferrari joins the NFT universe through a collaboration with a Swiss…

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.