Bitcoin sanctions could be next, but most Russians wont care

▤ Summary

As Moscows war on Ukraine rages on and the Russian economy — and currency — spiral to new lows, Washington is reportedly trying out a new way to dial up the pressure on Putin: sanctions targeting cryptocurrencies like bitcoin and ethereum. Taking aim at Russias access to digital cash comes as the U.S. and its allies, including notoriously neutral Switzerland, levy heavy punitive measures against Moscow. The concern is that the Kremlin, as well as other ancillary actors supporting the offensive on Ukraine, will evade the sanctions regime via digital tokens, which are not owned or issued by a central authority like a bank. Since Russia invaded Ukraine on Feb. 24, stats from crypto data provider Kaiko show that transactions on centralized bitcoin exchanges in both the Russian ruble and the Ukrainian hryvnia have surged to their highest levels in months. "Russias elite and financial authorities have been preparing for sanctions for some time," said Salman Banaei, head of public policy for North American for Chainalysis, which specializes in tracking activity on blockchain networks.

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