Chainalysis analysts released a new report detailing the methods Russia is using to bypass the sanctions imposed due to its military aggression against Ukraine.
The report highlights that the Central Bank of Russia is actively working on integrating crypto assets into the financial system for cross-border payments, enabling Russian companies to use digital currencies in international trade. This allows them to circumvent restrictions on traditional financial channels, which have been targeted by international sanctions, and to explore new opportunities to maintain foreign economic ties.
However, experts emphasize that large-scale evasion of sanctions through blockchain technology is unlikely due to a lack of liquidity in the market to conduct such large transactions. Additionally, existing control mechanisms, such as blockchain transaction tracking and compliance requirements from major cryptocurrency exchanges, limit the ability to conduct significant deals in violation of sanctions.
The report also notes attempts to use less popular crypto assets, but these efforts face challenges in scaling and a lack of infrastructure to support large trade volumes.
