By
Godfrey Benjamin
April 24th, 2024
The Ripple CEO stated that Russia could not use crypto to escape the impact of the global sanctions.
Challenging speculations that Russia could use crypto to evade sanctions, Ripple CEO Brad Garlinghouse has explained the impossibilities surrounding this assumption. Meanwhile, Ukraine has been receiving Bitcoin donations from different countries in the world to support the country during the present challenges. Last week, Coinspeaker reported experts’ assertion that Russia could use crypto as a way out of its numerous sanctions. The US government has restricted Russia from accessing foreign capital. Following the sanctions, experts said Russia may repeat its 2014 action by leveraging cryptocurrency.
The European Commission has removed Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) as the war continues. Many believe that Ripple’s XRP could be a suitable crypto asset for Russia to evade the sanctions. In reaction, Garlinghouse and RippleNet general manager Asheesh Birla explained the positions of XRP and RippleNet. The Ripple CEO stated that Russia could not use crypto to escape the impact of the global sanctions.
Russia Can Not Use Crypto to Dodge Financial Sanctions, Ripple CEO Explains
In addition to other factors, Birla said that crypto is now becoming more traceable by governments. Garlinghouse supported the company’s general manager, reiterating why Russia cannot use crypto to dodge the sanctions. He pointed to the process of converting crypto to fiat currencies, which involves financial institutions. However, financial institutions are liable to lose their licenses if anyone on the OFAC list slips through the security measures. Extreme KYC/AML policies are in place to avoid letting anyone on the Office of Foreign Assets Control list escape security,
Speaking further, the Ripple CEO made an example of RippleNet, saying that the network is committed to “NOT working with sanctions banks and counties that are restricted counterparties.” He added that Ripple and its customer support abide by and enforce OFC laws and KYC/AML. Concluding his explanation, Garlinghouse said:
“Instead of listening to responsible players who have been clear they will abide by legal sanctions, some pundits and media insist on continuing to paint crypto as the Silk Road – both an exceptionally outdated and tired argument which simply doesn’t hold true today.”
As several automakers suspend operations in Russia, tech giant Apple (NASDAQ: AAPL) has stopped the sales of its products in the country. Apple added that it had removed Russian state-controlled media outlets from its App Store all over the world.
As it stands, it is uncertain how long the war will last as families continue to lose their loved ones.