Crypto world grapples with challenge of how to handle Russian sanctions over Ukraine invasion
Cryptocurrency exchanges are still trying to figure out how to deal with western sanctions against Russia after its invasion of Ukraine.US measures that were announced last Thursday (Feb 24) aim to limit Russia’s ability to do business in dollars and some other international currencies.
They include penalties on the nation’s major banks, as well as restrictions on elite citizens and their family members.That’s led to speculation that crypto - which is touted as an alternative to traditional financial systems - would serve as a tool wealthy Russians could use to circumvent those sanctions.Digital currencies might help billionaires buy goods and services and invest in assets outside of Russia, all while avoiding banks or institutions that adhere to sanctions and could trace their transactions.Some crypto exchanges are based in jurisdictions beyond the scope of sanctions, and others don’t require customer identification, making it difficult to impose curbs.
What’s more, some firms aren’t entirely sure how to even comply with the restrictions.“As of today, nothing concrete has been announced yet that would touch crypto,” said Maria Agranovskaya, a lawyer whose office represents crypto exchange Binance in Russia. “The UK entered certain limitations for banks for Russian citizens, but it doesn’t really relate to crypto.
Maybe it will impact crypto at some point, but not yet.”Binance lets anyone buy into a selection of more than 740 coins and crypto-fiat pairs in Russia.
