Although many countries have banned cryptocurrencies, decentralized money has become a core component of the global financial system. This means that it will inevitably become part of an international conflict, for better or worse and it is on full show as soon as Russian forces enter Ukraine.
As war broke out with Russia, Ukrainian authorities took to Twitter to urge netizens to send cryptocurrencies. Since then, crypto investors have reportedly given over $22 million worth of digital assets to a foundation that supports the Ukrainian government and the country’s military.
The turmoil in Ukraine has brought the growing industry to greater attention, with politicians and regulators concerned that cryptocurrencies could be used by Russian firms and government officials to circumvent sanctions. However, as more traditional crowdfunding techniques face challenges, the cryptocurrency has created a way for investors around the world to quickly transfer funds to Ukrainian troops.
In terms of crypto donations, Ukraine’s Deputy Prime Minister Mykhailo Fedorov shared wallet addresses on Twitter on February 26, urging people to “stand with the people of Ukraine” while “now accepting cryptocurrency donations. Bitcoin”. , Ethereum and USDT”.
Later, in the same Twitter thread, he wrote: “The people of Ukraine fighting for our freedom are forever grateful to Gavin Wood @gavofyork for his generous donation of $5M to the publicly promised @Polkadot$DOT Thank you on behalf of all of us in Ukraine working for a peaceful future.
So far, some reports have claimed that Ukraine has received at least $11 million through anonymous bitcoin donations.
Separately, Come Back Alive, a Kyiv-based organization that raises funds to arm and train Ukrainian military men, had a page taken by crowdfunding platform Patreon, which said that the page had been involved in military activities. had broken its rules prohibiting support of But now the organization is receiving funding from a crypto collective called UkraineDAO, which was created last week by some crypto enthusiasts.
According to a report it was said that Come Back Alive had pledged to use the money to provide medical aid to war victims instead of armed soldiers.
Additionally, it was also reported that cryptocurrency donations to Ukrainian volunteers and hacktivist groups have increased dramatically since the Kremlin launched its attacks on the neighboring country.
Sam Bankman-Fried, the billionaire CEO of crypto exchange FTX US, revealed in a tweet that he had given $25 to each Ukrainian on his platform.
These activities highlight the fact that in this time of crisis, donors who might otherwise have donated their money to huge charities have turned to cryptocurrencies as an alternative.
But in a different scenario, cryptocurrency exchanges have declined a request from Ukraine to suspend all Russian accounts.
As recently reported, major cryptocurrency exchanges such as Coinbase and Binance have refused to comply with Ukraine’s request to freeze all Russian accounts, claiming that doing so would harm people and would go against their values.
Russia, Crypto, and the Conflict
Russia has already been sanctioned by a number of countries that have raised concerns in some quarters that the Kremlin may be using crypto to evade sanctions and transfer money unnoticed.
According to preliminary reports, the Russian government is building a digital currency, and Russia is developing tools to obscure the origins of digital transactions. So if the purpose of the sanctions is to deter countries and corporations from doing business with Russia, crypto would be a means to circumvent them.
Understanding the scenario, Ukraine urged crypto and blockchain platforms to block addresses of Russian users. But a cryptocurrency exchange has declined the request.
Major cryptocurrency exchanges such as Coinbase and Binance have refused to comply with Ukraine’s request to freeze all Russian accounts, claiming that doing so would harm people and go against their values.
Separately, the US government is also considering how it might approve Russian cryptocurrency assets and has already advised cryptocurrency exchanges to guarantee that approved Russian individuals and organizations do not use its platforms. Huh.
complicated issues
But there are complications. Restricting Russia’s access to cryptocurrency could have dire consequences for the country, as the digital currency has grown in popularity in Russia, which is also the world’s third largest bitcoin miner, when in reality, this may not be possible.
Not all exchanges verify the identities of their customers, and in general it is difficult to trace the origin of cryptocurrency transactions. The legality of a cryptocurrency exchange’s compliance with restrictions may be determined by where it is registered and where it operates.
Russia has a long history of involvement in crypto-related cybercrime and illegal activities such as money laundering and ransomware. Therefore cryptocurrencies can also be used to raise funds for criminals.
According to reports, three-quarters of the money generated from ransomware attacks last year went to Russian-linked hackers. The Ukrainian government was targeted in January by a series of cyber attacks disguised as ransomware that demanded bitcoin before destroying data on government systems.
However, at this time it is not known how the cryptocurrency will affect the international conflict, or if it will help or cause more problems. But what is now confirmed is that all digital currencies have become an important part of global economies and have become part of the ongoing war.
read all breaking news, today’s fresh news And Assembly Election Live Updates Here.