After the generation of a warlike conflict at the beginning of this year, which has brought unfortunate consequences for the nations involved, in this case, Russia and Ukraine, without leaving aside the economic and financial effects that have led Europe and the United States to a state of crisis. The majority of people who trade Bitcoin do so by purchasing it on an exchange like bitcodemethods.com.
EU pushes countries in conflict to digital currencies
One country that is most familiar with using cryptocurrencies as a payment method is Ukraine, which has received millions of dollars in donations through Bitcoin.
Although Ukraine is in favor, Russia has been in the opposite case. The same ecosystem of digital currencies has shown the usefulness of these resources as an alternative financial method in situations of international conflicts.
This situation has caused significant discomfort both in the European Union and the United States since, in some way, the Riso country could avoid the sanctions imposed as a measure of pressure so that the conflict would cease.
The war between Ukraine and Russia is the first that gives way to cryptocurrencies as financial instruments, providing continuity to the investment and international trade processes of the nations involved in the conflict.
Currently, the rate of cryptocurrency mining in Russia is close to 14% of mining in the world, which positions the country as the third in the world in the issuance of digital currencies.
Ukraine is inclined towards the legal use and implementation of cryptocurrencies in the country; despite not having a more participatory role in mining, it has always been willing to support the digital financial market.
From this perspective, the sanctions have pushed these two countries to seek refuge in crypto assets as international negotiation tools that allow the economy and finances of both nations to be maintained.
The reality that was evidenced as a consequence of this warlike conflict was reflected in the decrease in the prices of cryptocurrencies and the increase in assets such as gold and oil, demonstrating that Bitcoin and other digital currencies should not be considered a hedge against geopolitical risks.
Singapore limits Exchanges that provide services to Russia
The largest Monetary Authority of Singapore, in alliance with the central bank and the various regulatory entities of the country, participated in the exchange platforms in a unique and reminding way that these must be governed and enforce the sanctions established against Russia as a coercive measure so that the conflict with Ukraine cease.
This situation was generated after the figures corresponding to donations by groups in favor of Russia and the war was disclosed, making Singapore noticeably uncomfortable due to the international alliance in favor of a ceasefire.
At the beginning of the war, an international agreement had been reached where the nations involved would be allowed to have a cryptocurrency payment limit of less than or equal to $10,000.
The situation changed radically in October when wallet services were suspended and prohibited as accounts for crypto asset transfers.
Kraken takes the first step.
Since the beginning of the Russo-Ukrainian war, cryptocurrency exchanges have demonstrated a pro-peace stance to the point where the Kraken cryptocurrency exchange has restricted the use of Russia-linked accounts.
Dapper joined labs that nullified Russian users’ and investors’ purchase, sale, and exchange of NFTs.
Over the months, various exchange platforms are joining the set of sanctions by the European Union. However, some Exchanges are considering the possibility of complying with the EU and, in turn, continuing to provide the service to their users.
Conclusion
The solution for these nations in conflict after the sanctions of the organizations and the international community has been cryptocurrencies, where international negotiations have been finalized through payment with digital currencies.
Despite Russia’s negative attitude regarding using and adopting crypto assets, it has created regulatory legal instruments that transparently allow trading within Russian territory, as long as illicit activities are not incurred.
