Russia can evade sanction through cryptocurrencies

[Etranger]

China is also a country that is not friendly to cryptocurrencies, but they are a strategic partner and ally of Russia. So I don't think Russia is using crypto to avoid sanctions and Western countries are being aggressive with crypto because of Russia.

Russia and China are using crypto, including USDT for transactions with one another. This way they avoid sanctions and make payments much faster and more unnoticeably to the outside world.On the official agenda, they may be against cryptocurrencies, but this does not mean that they do not use them for personal gain.

[electronicash]

China is also a country that is not friendly to cryptocurrencies, but they are a strategic partner and ally of Russia. So I don't think Russia is using crypto to avoid sanctions and Western countries are being aggressive with crypto because of Russia.

Russia and China are using crypto, including USDT for transactions with one another. This way they avoid sanctions and make payments much faster and more unnoticeably to the outside world.On the official agenda, they may be against cryptocurrencies, but this does not mean that they do not use them for personal gain.

i doubt their government uses the USDT, it would mean a large amount of sending USDT. if it's a known address, those USDT can be frozen. and they find it not in their best interest, remember they are dedollarizing. but the citizens i think in China and Russia could still be using stablecoins including the USDT.

the government of Russia and China do have their own version of SWIFT, they may be using them already if not their CBDC.

[Iranus]

China is also a country that is not friendly to cryptocurrencies, but they are a strategic partner and ally of Russia. So I don't think Russia is using crypto to avoid sanctions and Western countries are being aggressive with crypto because of Russia.

Russia and China are using crypto, including USDT for transactions with one another. This way they avoid sanctions and make payments much faster and more unnoticeably to the outside world.On the official agenda, they may be against cryptocurrencies, but this does not mean that they do not use them for personal gain.

USDT is a stable and centralized currency, every transaction will be tracked, especially large transactions. Meanwhile, both are close allies, meaning both central banks can communicate and connect easily with each other. Do you think they will use USDT while they can use the currency of 1 of 2 countries to trade? I don't think they are stupid enough to use centralized cryptocurrency like USDT for their transactions to avoid sanctions. Using USDT is even more dangerous than using USD because their cryptocurrency transactions can be frozen at any time if the US requests Tether to do so.

I don't know what basis you base your claim that China and Russia are using cryptocurrencies for their transactions, but according to my understanding, they don't need cryptocurrencies like bitcoin, XRM... let alone centralized stablecoins.

[Ozero]

The Russia's central bank wanted cryptocurrencies to be banned in its country but the Russian president, Vladimir Putin said bitcoin mining and other crypto mining will be beneficial for Russia. Some people at that time have been supectimg this could be a move by the Russia's president that he is planning to invade Ukraine which will result to sanctions, thinking cryptocurrencies would be a means to evade sanctions and make it economically less effective.

Ukrainian Vice Prime Minister Mykhailo Fedorov demand crypto exchanges to freeze all Russian accounts so that the sanction can be effective, but most exchanges did not support this. I read few days ago that cryptocurrencies may not help in Russia sanction but FinCEN concluded that Russia can attempt to use cryptocurrencies to evade sanctions.

It seems that the very difficult situation with the use of currency in international trade in Russia, after the Moscow Exchange was prohibited from using the dollar and euro, and trading using Indian rupees and the Chinese yuan showed significant difficulties, is pushing the Kremlin to use cryptocurrency.

The State Duma Committee on the Financial Market approved for adoption in the first reading bill No. 341257-8, which allows the Central Bank to launch an experiment on creating a platform for the use of cryptocurrencies in international payments from September 1.
In Russia, special legal regulation may be introduced for projects in the field of digital innovation. There is currently a ban on the use of digital currency for payments in the country. The bill approved by the committee provides the opportunity to use cryptocurrency “with certain features” within the framework of the EPR. For this purpose, it is established that the Bank of Russia performs the functions of an authorized and regulatory body on EPR issues in the field of digital innovations in the financial market. It is clarified that the EPR program in the field of digital innovations in the financial market may include the use of digital currency as a currency value, conducting transactions with digital currencies as a means of payment in foreign trade, defining the rights and obligations of residents and non-residents when conducting foreign exchange transactions with digital currency , as well as regulation of the activities of currency control authorities and agents in this area.
https://www.interfax.ru/russia/970577

Will cryptocurrency save the Russian economy from the impending steep dive into which it plunged itself with the attack on Ukraine? The answer will be very soon.

[shield132]

China is also a country that is not friendly to cryptocurrencies, but they are a strategic partner and ally of Russia. So I don't think Russia is using crypto to avoid sanctions and Western countries are being aggressive with crypto because of Russia.

Russia and China are using crypto, including USDT for transactions with one another. This way they avoid sanctions and make payments much faster and more unnoticeably to the outside world.On the official agenda, they may be against cryptocurrencies, but this does not mean that they do not use them for personal gain.

China doesn't use cryptocurrencies, their citizens use cryptocurrencies. This means that the government doesn't use crypto to avoid sanctions, to be honest, they don't need it because they produce everything and export goods to countries like the USA.

Will cryptocurrency save the Russian economy from the impending steep dive into which it plunged itself with the attack on Ukraine? The answer will be very soon.

Mate, two years have passed, do you expect an answer soon? The answer is here, sanctions didn't affect Russia the way everyone was expecting because Russia can buy goods from neighbours like Turkey, Georgia, Armenia and etc... Buying process became slightly difficult for Russia and slightly expensive because of 3rd party countries, otherwise, there aren't devastating situation because of that ban.

[Ozero]

Will cryptocurrency save the Russian economy from the impending steep dive into which it plunged itself with the attack on Ukraine? The answer will be very soon.

Mate, two years have passed, do you expect an answer soon? The answer is here, sanctions didn't affect Russia the way everyone was expecting because Russia can buy goods from neighbours like Turkey, Georgia, Armenia and etc... Buying process became slightly difficult for Russia and slightly expensive because of 3rd party countries, otherwise, there aren't devastating situation because of that ban.

The sanctions did not work completely as planned, but they still slowly continue to work and bring their destructive effect to the Russian economy. Due to its enormous economic potential, Russia has a large margin of safety, but it is not unlimited. In addition, there is not enough unity in the world regarding the application of sanctions and Russia takes advantage of this. The main thing is that it can still sell its oil and gas, which brings it 60 percent of its total profits. But Putin’s Russia is already approaching the point beyond which its economy will begin to plummet.

The fact that Russia is trying to use cryptocurrency in international trade is clear evidence that it has serious problems in its financial sector, and no one needs its ruble. Russia has almost used up its main financial reserve - the National Welfare Fund, which has become the main reserve for financing the war in Ukraine. Of course, money and soldiers in Russia will not run out quickly, but armored vehicles and shells are running out, and the number of aircraft, ships and other expensive equipment is decreasing. North Korea has already handed over to Russia its five million half-defective shells, but it also has limited supply.

[Mrbuck]

The Russia's central bank wanted cryptocurrencies to be banned in its country but the Russian president, Vladimir Putin said bitcoin mining and other crypto mining will be beneficial for Russia. Some people at that time have been supectimg this could be a move by the Russia's president that he is planning to invade Ukraine which will result to sanctions, thinking cryptocurrencies would be a means to evade sanctions and make it economically less effective.

Ukrainian Vice Prime Minister Mykhailo Fedorov demand crypto exchanges to freeze all Russian accounts so that the sanction can be effective, but most exchanges did not support this. I read few days ago that cryptocurrencies may not help in Russia sanction but FinCEN concluded that Russia can attempt to use cryptocurrencies to evade sanctions.

FinCEN Provides Financial Institutions with Red Flags on Potential Russian Sanctions Evasion Attempts

What is your take? What role can cryptocurrencies play in helping Russia sanctions evasion and to what extent can this be?

Russians and USA and ukraine was creating the cryptocurrenciey it's not even secret anymore.
The USA wall street got money but no brains so they started work together with russians to build new money system off course they use it to avoid sanctions.
Becouse only brain can Do this ...USA was using germany enginering after war to build powrful military and cars because USA got no Brain ...now they use russians to build financial system but power will be USA hands

[iv4n]

As someone who lived under sanctions for years I can only tell you that sanctions are evaded in many ways. Starting from small people who start smuggling which can be very profitable, it is especially easy if you know the people at the border... the people living in the border areas know each other very well. State smuggling is especially prominent, the state continues to import everything it needs, but it does so through secret channels, and in my country, people are still talking about how the state smuggled and where all the money from smuggling went.

And now imagine a big country like Russia, with so many borders, and friendly countries, and does anyone really think that goods are not coming from somewhere? These are fake companies, papers are redone, trading never stops, but where the money goes and who gets the most wealth it's the public secret.

[dezoel]

As someone who lived under sanctions for years I can only tell you that sanctions are evaded in many ways. Starting from small people who start smuggling which can be very profitable, it is especially easy if you know the people at the border... the people living in the border areas know each other very well. State smuggling is especially prominent, the state continues to import everything it needs, but it does so through secret channels, and in my country, people are still talking about how the state smuggled and where all the money from smuggling went.

And now imagine a big country like Russia, with so many borders, and friendly countries, and does anyone really think that goods are not coming from somewhere? These are fake companies, papers are redone, trading never stops, but where the money goes and who gets the most wealth it's the public secret.

I agree, because things like these are happening around us, and we are having many peoples those can do these easily without any problem, and they are taking good profit of these sanctions but sadly still a large community is suffering with these all because they are not able to have jobs and things which are important for them even peoples those are having money can go through for doubling their money easily, and they are also having peoples those can help them in these situations.

As mentioned Russia is big country with many neighbours and there are many opportunities for things like these we have many roads and other ways to bring smuggled things which are selling by agents, and they are giving commissions peoples those are helping them I have few peoples which are doing these and having many tricks without any serious trouble as well.

[Wakate]

The Russia's central bank wanted cryptocurrencies to be banned in its country but the Russian president, Vladimir Putin said bitcoin mining and other crypto mining will be beneficial for Russia. Some people at that time have been supectimg this could be a move by the Russia's president that he is planning to invade Ukraine which will result to sanctions, thinking cryptocurrencies would be a means to evade sanctions and make it economically less effective.

Ukrainian Vice Prime Minister Mykhailo Fedorov demand crypto exchanges to freeze all Russian accounts so that the sanction can be effective, but most exchanges did not support this. I read few days ago that cryptocurrencies may not help in Russia sanction but FinCEN concluded that Russia can attempt to use cryptocurrencies to evade sanctions.

FinCEN Provides Financial Institutions with Red Flags on Potential Russian Sanctions Evasion Attempts

What is your take? What role can cryptocurrencies play in helping Russia sanctions evasion and to what extent can this be?

I don't think it is good for the opposite parties to use cryptocurrency to sanction Russia. This doesn't make any sense at all. The marin reason why Bitcoin was established is to help us rule out the government dominance to our funds so we don't always depend on the  government for everything we have to be processed by them before we do anything. Cryptocurrency is meant to be easy and processed without any third parties. Now the government is trying to shift the sanction to include crypto which doesn't make any sense at all. They can sanction and do whatever they like but that should not include cryptocurrency.

[Ozero]

I don't think it is good for the opposite parties to use cryptocurrency to sanction Russia. This doesn't make any sense at all. The marin reason why Bitcoin was established is to help us rule out the government dominance to our funds so we don't always depend on the  government for everything we have to be processed by them before we do anything. Cryptocurrency is meant to be easy and processed without any third parties. Now the government is trying to shift the sanction to include crypto which doesn't make any sense at all. They can sanction and do whatever they like but that should not include cryptocurrency.

If Russia uses or is already using cryptocurrency to circumvent the sanctions that were imposed on it in connection with the military invasion of Ukraine, then it is quite logical that the international community will take measures to prevent this and thereby limit Russia’s ability to finance the war. Cryptocurrency cannot be separated from the economic and political life of states. Cryptocurrency is used in society and society will influence it whether we want it or not.

Russians can avoid sanctions and the resulting influence of states on cryptocurrency if they influence their government and Putin withdraws Russian troops from Ukraine. But approximately 70 percent of Russians support this war of conquest. Therefore, the Russians themselves are to blame for this situation.

[Abiky]

As someone who lived under sanctions for years I can only tell you that sanctions are evaded in many ways. Starting from small people who start smuggling which can be very profitable, it is especially easy if you know the people at the border... the people living in the border areas know each other very well. State smuggling is especially prominent, the state continues to import everything it needs, but it does so through secret channels, and in my country, people are still talking about how the state smuggled and where all the money from smuggling went.

And now imagine a big country like Russia, with so many borders, and friendly countries, and does anyone really think that goods are not coming from somewhere? These are fake companies, papers are redone, trading never stops, but where the money goes and who gets the most wealth it's the public secret.

"Where there's a will, there's a way". Governments always find a way around sanctions. They resort to doing business and trading under the table. It's what Russia's been doing after all these years. I see the current dilemma between the West and Russia as nothing more than pure drama. We all know both sides need each other. Even with the sanctions, some US-based businesses/companies are still doing business with Russia. Like McDonald's for instance which rebranded as "Tasty and That's It". Same company and business model under a new name.

Eventually, the West will change its mind and ease off its sanctions against Russia. It should only be a matter of time before this happens. A quick deal between Russia and Ukraine, and everything will be like nothing happened.

[EarnOnVictor]

Ukrainian Vice Prime Minister Mykhailo Fedorov demand crypto exchanges to freeze all Russian accounts so that the sanction can be effective, but most exchanges did not support this. I read few days ago that cryptocurrencies may not help in Russia sanction but FinCEN concluded that Russia can attempt to use cryptocurrencies to evade sanctions.

In this regard, I believe the Western power and their allies are not so particular about the sanctioning of Russia through exchanges, because if they do, it will be more severe, they always have their way in cases like this. I can only think that they were smart enough to know that many cryptocurrencies are decentralised and can be accessed through a VPN. This means that people can perform crypto transactions that will be difficult for the authorities to decipher. Even the little they will know will be so stressful for them to achieve that. So why stress exchanges when there is an alternative (non-custodial) that can naturally mix the transaction?

What is your take? What role can cryptocurrencies play in helping Russia sanctions evasion and to what extent can this be?

You can see today that the Western sanction has almost no effect on Russia anymore. The world is evolving and cryptocurrency is the latest development around financial dealings, so all fingers are pointing to it in helping Russia to lessen the effect of the sanction.