Ripple CEO Explains Why Russia Can’t Use Crypto to Bypass Financial Sanctions
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Answer Ripple CEO Explains Why Russia Can’t Use Crypto to Bypass Financial Sanctions
Cryptocurrencies have played a major role in the geopolitical tensions between Russia and Ukraine.
While Ukraine receives bitcoin donations from around the world, there are fears that Russia will use cryptocurrencies to ease mounting sanctions.
Russia faces global sanctions:
These concerns come in the wake of recent tough economic sanctions imposed on Russia by several Western countries, including preventing Russian banks from accessing the international payment system “SWIFT”.
After proposals to ban Russian crypto accounts were rejected, the cryptocurrency space has seen growing speculation and opinions.
Most of it has to do with how the broader cryptocurrency industry will suffer if global regulators impose heavy penalties on such platforms for allegedly allowing Russians to use the borrowed nature of cryptocurrencies to continue their normal business.
Read:The Chairman of the Board of Directors of “SEC” stated: The SEC is working with the CFTC on regulating the crypto market
Ripple CEO: Russia Can’t Use Crypto to Evade Sanctions
Brad Garlinghouse, CEO and co-founder of Ripple, told Twitter that Russia would not be able to use crypto to evade global sanctions.
I still see vague arguments from uninformed critics about how cryptography works. I want to repeat what Tweet embed Yesterday he said – there are realistic reasons why cryptocurrencies cannot be used on a large scale for Russia to evade sanctions.
– Brad Garlinghouse (@bgarlinghouse) March 2, 2022
Garlinghouse backed up earlier comments made by the company’s general manager on Monday, noting that cryptocurrency exchanges work in tandem with several banking partners who risk losing their licenses if a blacklisted individual bypasses every security measure put in place.
According to Garlinghouse, in order to prevent such scenarios from happening, cryptocurrency exchanges have already put in place several strict measures, including strict Know Your Customer (KYC) and anti-money laundering policies.
He added:
RippleNet, for example, has always been committed – and remains to this day – not to work with sanctioned banks or countries that impose restrictions on counterparties.
Read:Stocktwits opens cryptocurrency trading services to its clients
Ripple and our clients support OFAC laws and KYC/AML procedures.
Garlinghouse notes that the argument that cryptocurrencies are preferred by criminals for money laundering is outdated.
Read:Bitcoin Miners Sold All Their Bitcoin Coins in May 2022
He went on to explain:
Rather than listening to responsible players making clear that they will abide by legal sanctions, some critics and media outlets insist on continuing to portray cryptocurrency as the Silk Road, an exceptionally outdated and cumbersome argument that simply does not apply today.
Former US presidential candidate Hillary Clinton criticized cryptocurrency exchanges for refusing to stop serving users residing in Russia, saying she was frustrated:
Hillary Clinton: I am disappointed that some crypto exchanges refused to stop serving the Russians
Read also:
Hillary Clinton: I am disappointed that some crypto exchanges refused to stop serving the Russians
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