Cryptocurrency as sanction evasion appears limited, but that could change in the future – ING

Crypto providers have to apply the global sanctions regime against Russia like any other business. Strategists at ING do not see cryptocurrency as a major sanction evasion route today, though this could change in the future.

Concerns that cryptocurrencies are a sanctions-busting tool seem exaggerated, for now

“Cryptocurrency markets may be a way for Russians to evade Western sanctions and/or Russian restrictions. But there are other ways too. Financial flows can, to a limited degree, be diverted to China and other jurisdictions that have not joined Western sanctions. Cash and gold could be carried across the border physically. From this perspective, imposing a generic ban on all Russians transacting on crypto exchanges seems inconsistent with sanction policies chosen in other areas.”

“Yet things are moving fast. Western sanctions themselves and their goals may evolve over time. Meanwhile, Russian countermeasures curtail the room for cross-border transactions too. So while the role of cryptocurrency in facilitating sanction evasion may appear limited today, that could change in the future.”