US Urges Crypto Exchanges to Make Sure Russia Doesn’t Avoid Sanctions
TL analysis; DR
- US authorities have issued directives to cryptocurrency exchanges instructing them to restrict access to individual users in Russia.
- Despite the sanctions, Russian consumers have turned to cryptocurrencies to protect their financial stability.
- As the sanctions began to have an impact, the Russian economy was on the verge of a serious decline.
The US Treasury Department has asked cryptocurrency exchanges to ban Russian citizens from accessing crypto services to avoid violating economic sanctions against the country. Specifically, Binance, FTX, and Coinbase, have been required by the US government to implement a regulation targeting and focusing on Russian users, which many appear to be complying with.
This requirement comes as Russian consumers have switched to cryptocurrencies due to the sanctions crisis. Despite being banned from using traditional financial institutions, Russians are increasingly using cryptocurrencies to conduct transactions and store value. Earlier this week, the Ukrainian government also asked crypto exchanges not to serve Russians, according to Ukraine’s deputy prime minister, Mykhailo Fedorov.
Cryptocurrencies are gaining popularity in Russia as the country faces growing economic sanctions from the United States and its allies. The Russian government has banned its citizens from using traditional financial institutions in response to these sanctions. This has led many Russians to turn to cryptocurrencies as an alternative to conduct transactions and store value. The US authorities have stepped up efforts to regulate the use of cryptocurrencies, and this latest initiative may provide them with the justification they are looking for.
Mixed Emotions from Cryptocurrency Exchanges US Pledge
So far, the reaction from crypto exchanges has been mixed. While some crypto exchanges have announced that they will block Russian addresses, others have said they will not comply with the directive. For example, Binance, which is out of reach of countries other than the smaller US exchange, has refused to ban Russian users. However, it has promised to take action against accounts belonging to those banned. Coinbase, on the other hand, has said that it will not ban any Russian addresses but will closely monitor transactions for any signs of sanctions evasion.
This directive from the US Department of the Treasury is just the latest in a series of efforts aimed at regulating the use of cryptocurrencies. While it is unclear how this will affect the overall use of cryptocurrencies in Russia, it will likely cause some friction between the Russian and US governments. It remains to be seen how exchanges will react in the coming days and weeks. However, we will likely see more crypto exchanges implementing measures to restrict access for Russian citizens.
Sanctions depress the Russian economy
The Russian economy has been struggling to match the world’s superpowers, and increased sanctions from the United States are only likely to make things worse and bring it down. The Russian ruble has fallen in value and the economy is in recession. Cryptocurrencies have gained popularity in Russia as an alternative to the falling ruble. However, with this latest directive from the US Treasury, it is unclear how long this case will last.
This latest move by the US could be the final straw leading to the downfall of the Russian economy. Russian consumers have turned to cryptocurrencies to protect their financial stability, but with this new development, it is unclear if this will be possible. We will have to wait and see what happens in the coming weeks and months as the situation in Russia continues to evolve.
https://www.cryptopolitan.com/us-urges-crypto-exchanges-russia-sanctions/ US Urges Crypto Exchanges to Make Sure Russia Doesn’t Avoid Sanctions