Anti-Russian sanctions and cryptocurrency: Temptation for business?

In the past five years, Russia has survived several rounds of sanctions by Europe and the United States. Each time they touched on a wider range of persons and companies. Each sanction stage included

As a rule, sanctions for individuals assumed that this person would not be able to get a visa to enter the country that introduced them. Also, his bank assets in this state were frozen. Yur. People who have fallen under sanctions, as a rule, also threatened the freezing of assets, they were prohibited in them to invest residents of the sanctions of countries, restricted on their lending and so on.

To date, its sanction lists today have the United States, the European Union, Canada, Switzerland, Japan, Australia and New Zealand. If we talk about 511 in the lists of legal entities, their distribution by sectors looks like this:

Such infringement of financial flows can make business search for loopholes that will still restore the usual circulation of funds. The virtual currency could come to the rescue as a way of underground transfer of money through the impenetrable borders of states.

However, in a similar way to use cryptocurrency at Jurlitz will not work. The fact is that so far in the countries that have introduced sanctions, or in Russia, the legislation on digital assets has not yet been made. Work on it is now actively coming, but until the final versions of laws — the business «in white» will not be able to use cryptocurrency as a way to attract investments, nor as a method for protecting its funds (for example, if this is a Russian company with assets abroad who want to freeze). Neither the Russian nor foreign regulators will be treated favorably to the open impact of their resources in the shadow sector.

Also, the FIAT translation procedures themselves are still not regulated from the point of view of the business process, which must pass the company to get into Bitcoin. Try to imagine how, for example, such a rigidly bureaucratic, which is under constant supervision of Gosbank officials as Sberbank is trying to officially translate part of assets, for example, in ETH. It is believed in such a picture with difficulty.

However, relatively useful virtual currency can be for the defendants of those lists that affect the physicals. Yes, it will still not be able to solve problems with official investment. However, partly can protect funds from blocking or allow the shadow circulation of capital.

At the moment there are 385 people in the lists, the distribution of which looks like this:

The cryptocurrency for them is still not interesting when it comes to gigantic multi-billion dollars. At the moment, the FIATA sharing procedure on the virtual currency is still not so simple for large capital. As a rule, such transactions occur in the OTC sector (that is, between the Marketomaker and the buyer, bypassing the exchange and other more or less official organizations). Commissions for the exchange of such a sum, most likely make capital owners lose all interest in the transaction. It will also not be operational. In addition, there are much more well-established schemes with offshore accounts for such processes.

However, for the output abroad, some small amount — for example, a few hundred thousand dollars — the incident currency may well come in handy. On official investment can still be forgotten, but it is a shadow stream of capital, which leaks through the sanction barrier.

OTC-market in 2018 clearly lived in full life. The platforms for over-the-counter transactions were encountered so much interest from investors, which established very impressive thresholds on transactions — and raised them throughout the year. Thus, the Circle Trade OTC platform raised the minimum threshold for trade operations with bitcoin from $ 250 thousand to $ 500,000 in connection with the user activity.

In addition, large capital to the platforms, which make large capital in the virtual currency, have carefully seen already active titans of the crypton. The own OTC playground launched Kraken. BINANCE invested $ 3 million at the Koi Trading OTC platform. The largest Coinbase cryptocurrency company in the USA literally confirmed his plans for the launch of the OTC platform for institutional investors.

Part of the clients of these sites are including the Russians. It cannot be said that their interest in cryptocurrencies is connected exclusively with the pressure of sanctions. However, they really have become an additional factor in recent years, pushing Russian capital towards the virtual currency. Now the ruble is already on the 7th place among the most traded to the Bitcoin of national currencies in the last 24 hours (in the first place the US dollar and Japanese yen):

Yes, 0.17% is just a drop in the sea of the entire bitcoin turnover. But these are only those tools that initially exchanged on cryptocurrency in rubles. And for the investor, even Russian, much more options for leaving FIATA in the virtual currency will be given a dollar and euros in which you can pre-convert the amount. Therefore, the real volumes of the presence of Russian residents in the cryptomyr are definitely much greater.