Can the Kremlin Use Crypto to Evade Sanctions? Doubtful, Experts Say. But for Some Ordinary Russians, It’s a Lifeline

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest
Share on whatsapp
WhatsApp
Share on telegram
Telegram

Where Ted Talks end, Truth Talks begin.
Defending democracy by defending free speech

Opinion pieces don’t necessarily reflect the position of our news site but of our Opinion writers.

Can the Kremlin Use Crypto to Evade Sanctions? Doubtful, Experts Say. But for Some Ordinary Russians, It’s a Lifeline

By Erin Prater, Bloomberg

The Kremlin won’t be able to use virtual money to evade sanctions from Western companies, Binance founder Changpeng Zhao said Friday, because “crypto is too small for Russia.”

“Currently, the media and politicians are spending a lot of effort and focus on crypto and sanctions,” said Zaho, who heads up the cryptocurrency trading platform, as reported by The Guardian.

But they should shift their energies elsewhere, given the dismally small share of global net worth that exists in crypto, he said.

“If we look at the crypto adoption today, there is probably about 3% of the global population with some kind of crypto exposure (i.e., owning some crypto),” he said, according to The Guardian. “Of those, most only have a small percentage of their net worth in crypto. … There is probably only less than 0.3% of the global net worth in crypto today.

“This percentage applies equally to Russia.”

Another obstacle to Russia using crypto as a work-around, according to Zhao: The use of publicly accessible blockchain renders it “not an effective tool for illicit activities,” he said, calling it “too traceable.”

Meanwhile, ordinary Russians are using crypto “as a lifeline,” Coinbase Global Inc. Chief Executive Officer Brian Armstrong said this week.

“Many of them likely oppose what their country is doing, and a ban would hurt them, too,” Armstrong said.

Coinbase said Friday that it isn’t banning all users at the moment, though it would comply if the U.S. government decided to impose such a restriction.

The cryptocurrency exchange will block transactions from IP addresses that might belong to sanctioned individuals or entities, as will any other regulated financial services business, Armstrong said in a Twitter thread. But it won’t pre-emptively ban all Russians from using Coinbase, he said.

The cryptocurrency industry has gotten significant attention amid Russia’s invasion of Ukraine, with some government officials wondering whether Russia or the country’s wealthy might be able to skirt sanctions by using crypto, and Ukraine actively seeking donations via digital assets. Mykhailo Fedorov, Ukraine’s deputy prime minister and minister for digital transformation, recently asked the major crypto exchanges to block addresses of Russian users.

Recent blockchain data suggest residents in the sanction-hit nation have been in no hurry to trade crypto on major exchanges. Ruble-denominated crypto activity was just $34.1 million on March 3, according to Chainalysis. That’s down from a recent peak of $70.7 million on Feb 24—and the $158 million record on May 20, 2021.

Armstrong said he doesn’t see a high risk of Russian oligarchs using crypto to avoid sanctions because the open ledger makes movement of money more traceable than using other assets like cash or gold.

Armstrong’s remarks dovetail with comments from Zhao, who said on Wednesday that it would be “unethical” for his exchange to restrict all Russians.

 

Editor’s Note:

Start investing In cryptocurrency with Bitxchange www.bit-xchange.org. If you’re new to the world of crypto and figuring out how to buy cryptocurrencies, then cryptocurrency exchanges like Bitxchange can help you to easily buy and sell crypto.

Opinion pieces don’t necessarily reflect the position of our news site but of our Opinion writers.

*Note We Deliberately Miss Spell Some Words or Add Capital Letters To Get Around Big Tech Censoring.

Support the ANR from as little as $8 – it only takes a minute. If you can, please consider supporting us with a regular amount each month. Thank you.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest
Share on whatsapp
WhatsApp
Share on telegram
Telegram

Related News

Where Ted Talks end, Truth Talks begin.
Defending democracy by defending free speech

Subscribe for free to our ANR news emails and access 2 free ebooks plus Reports to share with family and friends about Covid fraud and the danger of the vaccines.

Help us help defend free speech and save democracy from the World Economic Forum planned Totalitarian Great Reset.

and help us expose the Covid Fraudsters

Leave a Reply

Your email address will not be published. Required fields are marked *

Documentary: Died Suddenly (2022)

Play Video

McIntyre Report
Political Talk Show

Episode 158

Episode 158

How you can advertise on Truthbook.social

Help us help defend free speech and save democracy from the World Economic Forum planned Totalitarian Great Reset.

and help us expose the Covid Fraudsters

Ukraine. Military Summary And Analysis 23.01.2023

Raw Report

Ryan Jackson Saw show

in USD

in AUD

in GBP

in CAD

Jamie McIntyre

ANR on

Currency Exchange Rates in AUD

Live and updated every minute of the day

Nurses Speak Out

Get our free News Emails on latest articles, alerts and solutions for both legal templates and ways to help fight back against the Globalists vax Mandates , and health resources to boost your immune system and ways to Protect from deadly EMF 5G radiation and more.

FREE E-BOOKS AND REPORTS ALSO

ANR Meme Report

with Nadine Roberts

Episode 002

21st Century Political System

Play Video

Editor's Pick

Thank you for visiting the
Australian National Review

To continue accessing more articles for free simply enter your email address

Watch Full Documentary

Download the Full PDF - THE COVID-19 FRAUD & WAR ON HUMANITY