Russian individuals are using crypto to bypass sanctions

[jokers10]

To overcome the ongoing sanction people find the usage of cryptocurrency a way, but the same can't be used by the government which will destroy the money value of ruble. There is not much of value destruction with ruble and the recent plans of Putin to receive payments in Rubles for oil and gas will once again boost the value. Very few cryptocurrency exchange have given access for the Russian residents. Russia is looking for a source to overcome the ongoing situation and it doesn't look like a long term plan.

As for payments in roubles, they made export companies to sell 80% of foreign currency got with export revenue before plans on selling anything for roubles. So the difference between 80% and 100% is not so big. Yes, it helps with the rouble rates but it is far from market situation.

Main problem for government for bypassing sanctions with crypto is not only that it can destroy the money value of rouble, it can be hardly done as Russia is a big country with a huge import volume. Even if it can get enough crypto for trading (which is hard by itself as all amount of crypto holded by Russians is just about 100-130 billions of USD according prime minister Mishustin) it is impossible to import such volumes of goods into the country unnoticed.

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[justdimin]

As for payments in roubles, they made export companies to sell 80% of foreign currency got with export revenue before plans on selling anything for roubles. So the difference between 80% and 100% is not so big. Yes, it helps with the rouble rates but it is far from market situation.

Main problem for government for bypassing sanctions with crypto is not only that it can destroy the money value of rouble, it can be hardly done as Russia is a big country with a huge import volume. Even if it can get enough crypto for trading (which is hard by itself as all amount of crypto holded by Russians is just about 100-130 billions of USD according prime minister Mishustin) it is impossible to import such volumes of goods into the country unnoticed.

Russia is basically going for the short term solutions and that is not a bad thing when you are a whole nation in war because during the war times you could have radical short term solutions. In the end, we are going to have something that will be a bit more at ease and people will like it for sure.

What we need to realize is that the best thing we can do right now is to keep the sanctions against Russia, keep putting more money in renewable energy which will not only allow nations to be energy independent and not need sources from Russia but also it would help the climate as well, then hope that the war doesn't go for long and threaten Russia with these.

[LUCKMCFLY]

Well, it is no secret to anyone that the Russian high command has been using cryptocurrencies and BTC for a long time, that now it is on the table for those who had not had the benefit is something else, something like that for people who are from the town and who it was difficult for them to go buy any item to be able to eat or survive, because I admire the ability they have in that country to not have lost total and absolute control, I think that those people in Russia their only way out is cryptocurrencies and for me always it will be in Russia and in any other country in the world.

[DdmrDdmr]

Binance has now placed a stick in the wheel to accounts belonging to Russians or to people residing in the country, extending the scope from selected target names, to anyone with over 10K € equivalent in crypto. This is in light if the fifth wave of sanctions to the country.

According to an announcement made yesterday, the following changes apply to the accounts belonging to Russian nationals or residents:

-   Restrictions apply to all Binance accounts beloging to russian nationals, residents in russia, or companies in russia, with over 10K € in assets on the Exchange.

-   They will need to provide proof of residency (unclear to me if all or just >10K €).

-   Their accounts will only allow them to make withdrawls, and no longer accept deposits nor trading. This applies to spot, futures (giving them 90 days to close their possitions), wallets, staking and earnings.

- Accounts for Russian nationals or residents, with < 10K € will be able to opérate without the above restrictions.

The announcement could be expressed in a clearer manner in my opinion, and it seems to me somewhat messy.

I would expect the practice to further extend to other Exchanges, and who knows if even lowering the 10K bar.

[zasad@]

And who keeps 10,000 euros on a crypto exchange account?
I only use crypto exchanges without KUS and send no more than 1000 dollars at a time there. After the withdrawal of the purchased coins, I again send assets for 1000 dollars.
Even these services are much better than the centralized crap from binance
https://changelly.com/
https://changenow.io/
https://fixedfloat.com/

[royalfestus]

Russia never got a renounced exchange until now and this will have a strong impact on their decision to adopt cryptocurrency at this stage in the war. Binance announcement will be a strong warning to others, I also think  exchanges cant take care of all the transaction in Russia that runs into 100 of millions, except they stay in cryptocurrency for trade without Fiat at all.

[suryana]

post-sanctions received by Russia may or may not have a slight impact on the economy in the country due to the sanctions received from the impact of the war between the two countries.and the shift of some individuals to the crypto world is certainly a good capital for the survival of bitcoin considering that Russia is a country that is so big in the world. the European continent and slowly in the future not only groups of individuals who will use crypto but the wider community will also do this. We really hope that the topic above is not just a discourse and can be realized as soon as possible

[Slow death]

Binance has now placed a stick in the wheel to accounts belonging to Russians or to people residing in the country, extending the scope from selected target names, to anyone with over 10K € equivalent in crypto. This is in light if the fifth wave of sanctions to the country.

According to an announcement made yesterday, the following changes apply to the accounts belonging to Russian nationals or residents:

-   Restrictions apply to all Binance accounts beloging to russian nationals, residents in russia, or companies in russia, with over 10K € in assets on the Exchange.

-   They will need to provide proof of residency (unclear to me if all or just >10K €).

-   Their accounts will only allow them to make withdrawls, and no longer accept deposits nor trading. This applies to spot, futures (giving them 90 days to close their possitions), wallets, staking and earnings.

- Accounts for Russian nationals or residents, with < 10K € will be able to opérate without the above restrictions.

The announcement could be expressed in a clearer manner in my opinion, and it seems to me somewhat messy.

I would expect the practice to further extend to other Exchanges, and who knows if even lowering the 10K bar.

binance looks like an exchange that does not have a legal team, I commented on this in a past post when someone said that binance would not follow these government guidelines, I wondered:

if binance wouldn't follow what governments banned then what was the point of them asking for KYC? would they be following laws from where?

Today I see that they have already changed their minds and are already following what the governments have determined. this makes it seem that binance has no legal team and does things without thinking. even I get scared


about using bitcoin to circumvent sanctions, well i don't see how this can be a good thing for bitcoin and the whole cryptocurrency market, for me it just harms the cryptocurrency market i know russian citizens are not to blame for their government's evil but laws are laws and we have to respect when all governments impose sanctions against russia they are doing it to pressure the russian government to change its posture, but using bitcoin to circumvent these sanctions is something that does not benefit bitcoin, on the contrary it only harms bitcoin

[CaVO32]

Russia never got a renounced exchange until now and this will have a strong impact on their decision to adopt cryptocurrency at this stage in the war. Binance announcement will be a strong warning to others, I also think  exchanges cant take care of all the transaction in Russia that runs into 100 of millions, except they stay in cryptocurrency for trade without Fiat at all.

Most exchanges are neutral with this conflict as supposedly crypto is for all. For now, I believe, most exchanges will just wait for the government's restrictions towards crypto. If not, they will continue to cater these people, no matter what their origin is. So with this situation, I think, some of these Russians really are taking advantage of this opportunity. We can't blame these people because they need to find a way how to secure their assets.

[Carlton Banks]

Russia invaded Ukraine, and now the sufferers are Russian people and the Ukrainian common people.

any sanctions are affecting mostly poor & middle class Russians living outside Russian. As one poster mentioned, goods are already smuggled into Russia through Belarus before the war started anyway, so @Stompix, I don't think Boeing care if they sell parts to a German or Czech middleman that end up in Russia.

It's actually Europeans, Eurasians and North Africans that will be affected the most by all this. Ukrainian grain and rape seed oil is a big supplier to all those regions, and this affects cattle farming too (hence the price of most meat products will rise all over those regions, and across the rest of the world to some extent)

The Europeans will get a triple slap, as not only do they rely on Ukrainian agricultural exports, but also on those from Russia, plus Russian crude oil and gas are relied on heavily in Europe. Ironically, the bureaucrats who wrote the sanctions are aware, and exempted Russian oil and gas. That might not last long if Putin continues to demand payment in rubles.


The rest of the world aren't following the sanctions anyway, so this ultimately could affect Europeans most. Strange strategy for beating Putin; leave europeans cold, poor and starving while the rest of the world looks on in bemusement, and China and Russia start to cut deals to decrease US/EU influence. India and Saudi Arabia have done so already, Dollar settlement in trade is being supplemented by rubles and yuan deals. If the US threatened action against India or Saudi Arabia, use of military is their only credible/effective option.

[Ozero]

Some people might be able to bypass some sanctions but it’s quite tough to be able to. Most exchanges are KYC & aren’t allowing Russian nationals to trade with them atm. You can avoid sanctions by using crypto but how are they supposed to buy significant amounts of crypto when exchanges won’t accept their fiat?

I would like to hear the opinions of the Russians on this matter, how successfully they manage to circumvent both international sanctions and the prohibitions of their government when working with cryptocurrency. But social networks are blocked in Russia, reliable information about the course of the war of conquest in Ukraine and its consequences is hushed up and hidden, a massive attack from the media continues to be carried out in order to further zombify the population.
Apparently, the people of Russia do not write anything because they are afraid that they might be tracked. This is the result of Putin's massive support. Well, they wanted it themselves. And this is just the beginning...

[Baofeng]

There were enough reports that they have move to China or routing everything just to get away or bypass sanctions.

Or even bolder approach, turning crypto into gold. So they are getting bolder and sophisticated on their approach. Maybe the Russian government really did prepare for a long war or even anticipated sanctions will come on all front and could have also laid out to circumvent it.

[suryana]

The sanctions received by Russia will certainly have an impact on the economy in the country and the transfer to digital currency carried out by Russia will certainly make bitcoin indirectly have a very positive impact on the survival of bitcoin considering that Russia is a large country on the European continent.it would be a very good thing for the survival of bitcoin if the country had shifted to the crypto world, and we as miners also really hope that this adoption can make the bitcoin price stable again as soon as possible

[Argoo]

The sanctions received by Russia will certainly have an impact on the economy in the country and the transfer to digital currency carried out by Russia will certainly make bitcoin indirectly have a very positive impact on the survival of bitcoin considering that Russia is a large country on the European continent.it would be a very good thing for the survival of bitcoin if the country had shifted to the crypto world, and we as miners also really hope that this adoption can make the bitcoin price stable again as soon as possible

By what signs did you see Russia's transition to cryptocurrency? I am sure that there will be no improvement in the use of cryptocurrency for the citizens of Russia. The Putin regime is now taking all possible measures to prevent the flight of capital from Russia, which will inevitably happen anyway. Now Russians are massively buying real estate in Turkey in order to protect their capital from sharp inflation in their country, and even in order to obtain a passport of a Turkish citizen. There is a law there that if a foreign citizen has purchased real estate in Turkey worth more than 250 thousand dollars, then within three months he has the right to obtain citizenship of this country. From Russia, many will now go abroad, because over time this country will more and more turn into another North Korea.
Of course, some Russian citizens will try to protect themselves from the problems that arose after Russia's military aggression in Ukraine with the help of cryptocurrency. But in general, the population will sharply become poorer and this will not contribute to the strengthening of the cryptocurrency in this country.

[Wind_FURY]

The sanctions received by Russia will certainly have an impact on the economy in the country and the transfer to digital currency carried out by Russia will certainly make bitcoin indirectly have a very positive impact on the survival of bitcoin considering that Russia is a large country on the European continent. it would be a very good thing for the survival of bitcoin if the country had shifted to the crypto world, and we as miners also really hope that this adoption can make the bitcoin price stable again as soon as possible

Ser, it's actually Bitcoin that will be required for the survival of some countries. "Bitcoin" is merely a natural evolution of technology, like the invention of the printing-press, the telephone, or the internet.

There are other ways, and forms of usage, that "Bitcoin" can be of use to evade sanctions. One of them is to arbitrage a commodity like oil. If Bitcoin's price is high enough, Russia can use their crude oil and gas to power Bitcoin mining farms and sell the coins for profit, OR keep them to use to trade with other countries with other commodities.

Crypto mining could enable sanctioned Russians evade punitive restrictions researchers from the International Monetary Fund said.
Sanctioned nations could monetise domestic energy supplies, which cannot be exported abroad, by mining crypto currencies such as Bitcoin, an IMF report has revealed. While the magnitude of capital flows to sanctioned actors is “relatively contained,” the IMF said that it still presents “risks to financial integrity.”

https://www.cityam.com/crypto-mining-can-help-nations-evade-sanctions-imf-warns/