Non-compliant cryptocurrency exchanges are one of the ways by which Russia could push money out of the country, other methods include using DEXs (decentralized exchanges) which are anonymity enhancing platforms also. IMF also mentioned the use of private cryptocurrencies such as Monero (XMR) which makes tracking transactions impossible.
Law enforcement agencies along with financial institutions have focused on digital assets and regulating them further, currencies such as crypto can prove to be profitable in times of economic turmoil. IMF has concluded that cryptocurrency activities are “relatively contained” in sanctioned countries.
At this point, the share of mining in countries under sanctions and the overall size of mining revenues suggests that the magnitude of such flows is relatively contained, although risks to financial integrity remain, stated IMF.
How Has The Russian Government Reacted To This
As mentioned above, U.K. and U.S. regulators have all asked crypto businesses to be careful and sharp-eyed about the transactions which could occur on the Russian government’s part.
The Russian government, however, 2022 provided some clarity on where the nation stands about cryptocurrency mining.
At the beginning of this year, the Russian Central Bank wanted to propose a law against cryptocurrency mining citing environmental concerns.
There, however, could be a change as the President of Russia has spoken of how cryptocurrency mining can be advantageous for miners. Russia lately has again started to warm up to the technology as Russia recently considered starting accepting cryptocurrencies for the payment of oil and gas.
Bitcoin dipped on the four-hour chart. Image Source: BTC/USD on TradingView
