Chainalysis: Russia is using crypto to get around sanctions

According to representatives of the blockchain analytics firm Chainalysis, Russia is increasingly using crypto to bypass sanctions, but also for disinformation and election interference.

According to representatives of the blockchain analytics firm Chainalysis, Russia is increasingly using crypto to bypass sanctions, but also for disinformation and election interference. The country has “introduced a bill to facilitate cross-border payments, particularly via cryptocurrencies,” says Chainalysis Head of National Security Intelligence Andrew Fierman in a YouTube-talk.

He implies this is a step toward bypassing Western sanctions. His colleague Valerie Kennedy believes the use of cryptocurrencies actually signals the Russian government’s uncertainty. Her explanation: “In the ideal world of Russia, they would have used a central bank digital currency.” But the rollout of that has been too slow, forcing them to instead use a mix of different cryptocurrencies.

Just a few weeks ago signed by President Vladimir Putin a law legalizing crypto mining in Russia. He wanted to “seize the moment” to create a legal framework for crypto trading. “Russia is the most prominent and possibly the most advanced in this field, but we’re seeing these kinds of efforts around the world,” says Kennedy, who points first to China and Iran. 88 percent of global currency transactions are still conducted in U.S. dollars. More countries are now looking for alternatives, including crypto to alternatives.