Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

The War Backfires: Russian Crypto-Market Cripples as Conflict Continues

Cryptocurrency Jun 20, 2022 10:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The War Backfires: Russian Crypto-Market Cripples as Conflict Continues
 
MA
-0.85%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ETH/USD
-0.80%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
COIN
+4.12%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

  • Russia faces the repercussions of initiating the unprovoked war.
  • Despite hosting the 17 million miners, the Russian crypto market suffers as exchanges boycott services.
  • Ukraine receives massive global support through crypto donations.

From farmers toiling to buy fertilizers to people paying hefty amounts at the gas stations; from stores running out of cooking oil to nations reconsidering alliances, Russia’s invasion of Ukraine has triggered umpteen seismic repercussions. However, Beyond the rapidly expanding refugee crisis, the unprecedented sanctions, and the global relationship shakeup, lies a massive financial massacre with cryptocurrency at the heart of it.

The snowballing economic crisis followed by the Vladimir Putin-led nation’s attack on Ukraine has already impacted multiple sectors including energy, oil, food and agriculture, trading, foreign exchange, import, and export, among others. It is further expected that this conflict will shrink Russia’s economy by 11.2%

Additionally, It is believed that the nation’s 40-years-worth of effort in building a prosperous market-based economy, that began under Mikhail Gorbachev’s leadership, has failed miserably through Putin’s unprovoked war. Moreover, since the beginning of the war on February 24, 2022, more than 300 world-renowned brands have voluntarily halted services or dialed back their businesses from Russia, citing the conflict.

Besides playing a crucial role in this conflict, cryptocurrency is also an important tool for ordinary Russian citizens to resist financial totalitarianism. Hence the brunt has to be endured by both, the economy and the citizens of the nation. Here’s taking a glance at the aftermath of the feud upon the digital economy.

Russia’s Multi-Billion-Dollar Crypto Industry Crippled

Despite Russia being the world’s third-largest bitcoin mining hub, US officials targeted its bitcoin mining firm BitRiver considering it a potential threat to the efficacy of its sanctions regime. In detail, the officials showed concerns that the Russian government may monetize its vast oil and natural resources reserve with power-intensive crypto mining as a way to raise funds against the western sanctions.

The US officials disabled miners to access US crypto exchanges or mining equipment as a commitment to ensure that no asset becomes a mechanism for Putin’s regime to offset the impact of the sanctions.

The number of crypto users in Russia is also anticipated to degrade with the collapse of the Russian Ruble’s value, in spite of having above 17 million cryptocurrency owners/traders. Blanketing a market where more than 12% of citizens own cryptocurrencies (50% higher than the ownership rate among Americans), with such a sanction would penalize everyone in the economy, by all measures

Furthermore, leading cryptocurrency exchanges like Binance and Coinbase (NASDAQ:COIN) have suspended thousands of accounts and wallets linked to Russia, suspecting illicit activities. Mastercard Inc (NYSE:MA) and VISA Inc have blocked several Russian financial institutions from their payment gateway and recently, multiple Russian banks have been removed from the Society for Worldwide Interbank Financial Telecommunications (SWIFT) by the UK, the US, European Commission, and several other EU states.

Ukraine Receives Sympathy in the Form of Cryptos

Ukraine has raised over $60 million in crypto donations since the beginning of the invasion. More than $10 million was donated directly to the crypto wallets after the Ukrainian government solicited donations in bitcoin, Ethereum, and tether.

Ukrainian President, Volodymyr Zelenskyy has signed a virtual assets bill that will recognize cryptocurrencies as an asset in the country after the war gets over.

Continue reading on CoinQuora

The War Backfires: Russian Crypto-Market Cripples as Conflict Continues
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email