Moody’s: “Cryptocurrencies will not help Russia avoid sanctions” – Bits Media

The international rating agency Moody's conducted a study, as a result of which it became clear, that it will be very difficult for Russia to evade sanctions using cryptocurrencies.

Moody's published a report, in which he analyzed the impact of Western sanctions on the cryptocurrency sector in Russia and then, how digital currencies can help it avoid restrictions. First of all, the agency noted the increased number of small transactions with cryptocurrencies, committed by Russians. but, despite their anonymous nature, the transactions are minor and unlikely to be aimed at avoiding sanctions.

"Given the limitations, which the ruble faced in the markets when converting it into cryptocurrencies, and low liquidity, We count, that digital currencies are currently unlikely to be an effective and viable sanctions evasion tool for individuals.”, - says the report.

Experts also stated, that Russia can accept payments in cryptocurrencies for its oil and gas exports. However, Moody's believes, that the current size of the digital asset market and insufficient liquidity make this option inconvenient for Russia. The agency also emphasized, that many large cryptocurrency platforms have “know your customer” rules (KYC), which will help identify blacklisted users and prevent evasion of sanctions.

Earlier, Andrei Lugovoy, a member of the State Duma working group on legislative regulation of digital currencies, said, that Russia can overtake all other countries in the field of cryptocurrency mining. In his opinion, This requires clear legislative regulation of the work of miners.