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Cryptocurrencies and other digital assets could be easy for Russia to bypass the sanctions, but no evidence proved the instance
Since Russia initiated a military invasion in Ukraine, many western and European countries have imposed severe punitive sanctions on the country. But in America and other nations, the regulators and governments themselves are concerned that there could be possibilities that Russians and Vladimir Putin are trying digital assets to bypass the sanctions. However, these concerns are just concerns as there is no evidence or reports about proving such use of crypto by Russia, and experts agree.
Co-founder and Chief Strategy Officer at blockchain analysis firm Chainalysis, Jonathan Levin, put similar thoughts in a recent discussion along with a panel of experts. The discussion was with the Senate Banking Committee in which Levin stated that Russia is unlikely to have access to crypto as many politicians believe it has.
Levin said that they had not seen such evidence of either Russia or President Vladimir Putin using cryptocurrencies systematically to bypass the sanctions for the moment. He and other analysts think that there is not enough liquidity in the crypto market so that Russia could engage in such activity.
On top of that, if there would be such an incident happening about trying out crypto tactics, then the regulators in the US knew it already. Former Financial Crimes Enforcement Network (FinCEN) acting director Michale Mosier agreeing to Jonathan Levin, stated that it’s not like you could flip a switch and let cryptocurrency run a G20 economy. There should be a need for someone who wants rubles, and right now, there are many people in the world who would want rubles. Another thing is you would need to find someone willing to trade that feels comfortable that you are not violating any global law or laws. But for Russia right now, the situation is not that easy, and both the conditions are applicable to the country in which it fails.
Even after such news and expert opinions, numerous lawmakers in the US, especially democrats, are skeptical about the concern. Many of them have come back with concerns claiming that assuming Russia might not be involved in using cryptocurrencies to avoid sanctions to such a large extent. Still, it’s possible that certain Russian individuals are doing, so that has been sanctioned.
Massachusetts Democrat Senator Elizabeth Warren said that she and people in her constituency had already noticed such activities earlier in regions like Iran, North Korea, and Venezuela. Russia could also possibly consider similar tactics to promote its assets worldwide.
ALSO READ: Crypto Involved By US In Russian Deterrence, Alerts Exchanges
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
