Cryptocurrency exchanges are still trying to figure out how to deal with western sanctions against Russia after its invasion of Ukraine.
US measures announced on Thursday aim to limit Russia’s ability to do business in dollars and some other international currencies. They include penalties on the nation’s major banks, as well as restrictions on elite citizens and their family members.
That’s led to speculation that cryptocurrency – which is touted as an alternative to traditional financial systems – would serve as a tool wealthy Russians could use to circumvent those sanctions.
Digital currencies might help billionaires buy goods and services and invest in assets outside Russia, all while avoiding banks or institutions that adhere to sanctions and could trace their transactions.
Some cryptocurrency exchanges are based in jurisdictions beyond the scope of sanctions and others don’t require customer identification, making it difficult to impose curbs.
What’s more, some companies aren’t entirely sure how to even comply with the restrictions.
“As of today, nothing concrete has been announced yet that would touch crypto,” said Maria Agranovskaya, a lawyer whose office represents cryptocurrency exchange Binance in Russia.
“The UK entered certain limitations for banks for Russian citizens, but it doesn’t really relate to crypto. Maybe it will impact crypto at some point, but not yet.”
As of today, nothing concrete has been announced yet that would touch crypto
Maria Agranovskaya,
a lawyer who represents Binance in Russia
Binance lets anyone buy into a selection of more than 740 coins and crypto-fiat pairs in Russia. It also offers derivatives and non-fungible tokens. It recently appointed a former Bank of Russia executive as its director of government relations in the country.
“We have assembled a dedicated global compliance task force, including world-renowned sanctions experts, and are taking action steps required to fully comply with any sanctions while minimising impact to our user base,” the exchange said.
Coinbase, another cryptocurrency platform, is not available in Russia and Ukraine.
“We don’t have a very specific forecast about how it’s going to impact the crypto economy right now,” said Alesia Haas, chief financial officer of the company.
“It’s not a material part of our business and it’s not going to have an impact on our financials.”
Gemini Trust, the cryptocurrency platform run by the Winklevoss brothers, said it’s subject to New York banking compliance standards, and that it does not operate in Ukraine and Russia.
“However, we are conducting a robust review of customer accounts and activity to identify any exposure to sanctioned parties or regions and will take appropriate steps as necessary,” the company said.
Centralised exchanges that are registered with the Securities and Exchange Commission, with the Financial Crimes Enforcement Network, or with any state authorities as money transmitters would have the responsibility to comply with sanctions, said J Ashley Ebersole, partner at law firm Bryan Cave Leighton.
“I think it really just depends on what countries’ laws they may be subject to,” said Mr Ebersole.
“If there’s a jurisdictional basis for them to be subject to the laws of a country that has sanctions in place, then they could be expected to abide by those.”
If there’s a jurisdictional basis for exchanges to be subject to the laws of a country that has sanctions in place, then they could be expected to abide by those
J. Ashley Ebersole,
partner at law firm Bryan Cave Leighton
Unlike fiat currencies, which need to move through third-party institutions that have the ability to track, freeze or block them, cryptocurrencies can potentially be sent from one person directly to another regardless of any government sanctions or other restrictions.
People can use decentralised-finance exchanges, which don’t verify the identity of customers, to conduct transactions even if they are in sanctioned countries.
FinCEN’s 2019 guidance suggests that any peer-to-peer exchanges or decentralised exchanges that function as money transmitters are subject to the Bank Secrecy Act, and therefore must adhere to sanctions, Mr Ebersole said.
Centralised exchanges typically require personal information, especially when cryptocurrency is converted to fiat currencies. But such know-your-customer requirements may be omitted on small transactions.
“It’s the responsibility and pretty much the upheld responsibility of exchanges to basically screen and withhold the transactions coming from those addresses,” said Brett Harrison, president of cryptocurrency exchange FTX US.
FTX is in close communication with law enforcement agencies across several countries to track and trace questionable accounts, Mr Harrison said.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
The biog
Age: 23
Occupation: Founder of the Studio, formerly an analyst at Cleveland Clinic Abu Dhabi
Education: Bachelor of science in industrial engineering
Favourite hobby: playing the piano
Favourite quote: "There is a key to every door and a dawn to every dark night"
Family: Married and with a daughter
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The Bio
Favourite place in UAE: Al Rams pearling village
What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft
Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans
Best time to swim in the sea: When there is enough light to see beneath the surface
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
RESULTS
6.30pm Handicap (TB) US$65,000 (Dirt) 1,400m
Winner Golden Goal, Pat Dobbs (jockey), Doug Watson (trainer)
7.05pm Dubai Racing Club Classic Listed Handicap (TB) $88,000 (Turf) 2,410m
Winner: Walton Street, William Buick, Charlie Appleby.
7.40pm Dubai Stakes Group 3 (TB) $130,000 (D) 1,200m
Winner Switzerland, Tadhg O’Shea, Satish Seemar
8.15pm Singspiel Stakes Group 3 (TB) $163,000 (T) 1,800m
Winner Lord Giltters, Adrie de Vries, David O’Meara
8.50pm Al Maktoum Challenge Round-1 (TB) $228,000 (D) 1,600m
Winner Military Law, Antonio Fresu, Musabah Al Muhairi.
9.25pm Al Fahidi Fort Group 2 (TB) $163,000 (T) 1,400m
Winner Land Of Legends, Frankie Dettori, Saeed bin Suroor
10pm Dubai Dash Listed Handicap (TB) $88,000 (T) 1,000m
Winner Equilateral, Frankie Dettori, Charles Hills.
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Brief scoreline:
Liverpool 2
Keita 5', Firmino 26'
Porto 0
MATCH INFO
Fixture: Ukraine v Portugal, Monday, 10.45pm (UAE)
TV: BeIN Sports
Sholto Byrnes on Myanmar politics
Scoreline
Swansea 2
Grimes 20' (pen), Celina, 29'
Man City 3
Silva 69', Nordfeldt 78' (og), Aguero 88'
The specs
Engine: 3.8-litre, twin-turbo V8
Transmission: eight-speed automatic
Power: 582bhp
Torque: 730Nm
Price: Dh649,000
On sale: now
The biog
Name: Fareed Lafta
Age: 40
From: Baghdad, Iraq
Mission: Promote world peace
Favourite poet: Al Mutanabbi
Role models: His parents
Read more about the coronavirus
'Project Power'
Stars: Jamie Foxx, Joseph Gordon-Levitt, Dominique Fishback
Director: Henry Joost and Ariel Schulman
Rating: 3.5/5
'Unrivaled: Why America Will Remain the World’s Sole Superpower'
Michael Beckley, Cornell Press
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
