The current geopolitical issues – the Russia-Ukraine has left the world in a fury. The invasion of Ukraine by Russia has left the world shaken. After a lot of warnings and cross-talkings, Russia is continuing with the invasion and bearing the brunt of it.
Current state of Russia
There are many economic sanctions on Russia -especially by the United States. There are sanctions on many commodities, banks, and much more. The Financial Crimes Enforcement Network (FinCEN) suggested that a viable loophole for Russia is cryptocurrency. Cryptocurrency is a way that can be used for violating sanctions.
This is not an unprecedented connection. The anonymity and decentralized nature of blockchain technology is a way for Russia to flow funds and follow through connections. The majority of the mining also took place in Russia. The cyber-intellectual segment of Russia is known to be quite high, even to the mark of fear of a cyberwar.
Even EU lawmakers have called onto this potential risk of Russia using crypto assets. Russia is blocked from all other angles. Even the SWIFT banking system has flagged off Russia’s economic transactions. There is also an impending executive order. Biden is rumored to sign a document with new regulatory measures for cryptocurrencies.
Even ministers from Ukraine have urged European countries to stop the flow of Russia’s digital assets. It has asked to block all Russian Cryptocurrency accounts and set up a standard legal procedure for transactions. This comes from Ukraine’s plea to defeat Russia through economic means. The invasion is already costing Russia millions of dollars. With the freezing of offshore accounts, foreign investment – Russia’s economy is likely to see a negative trend.