First of all , just wanted to send my prayers to the brave Ukrainian people, wishing everyone to stay safe and all the strength in the world to get through these rough times.
Interestingly enough one of my first scary childhood memories is that I remember seeing news on TV. Disturbing images of tanks and military coming into our capital city Riga back in 90’s. I remember quite well even just being a toddler that moment , the fear and panic that kicked into my parents, everyone was on the edge. I was raised by my dear grandmother and she would tell stories how hard was back then surviving the WW2, so I can deeply relate to these innocent people who are going through the biggest terror of their lives. I would have never imagined that anything like this would happen at this time of our existence. I don’t think anyone of us can really understand this kind of violence and tyranny…This time you are not alone though the whole world is seeing this, the truth cannot be hidden anymore…
Will crypto exchanges support the global sanctions against Russia or will they allow Russia to circumvent them? blockchainking | Publish0x
The Belgium headquartered Society for Worldwide Interbank Financial Telecommunication, SWIFT, is the go-to executioner of financial transactions and payments between banks worldwide. Around 50% of all high-value cross-border payments worldwide use the SWIFT network, linking more than 11,000 financial institutions in over 200 countries, and exchanging over 32 million messages daily.
Like all institutions, SWIFT had to deal with American involvement, which was part of the United States’ attempt to gain access to data after the 11 September attacks, within their Terrorist Finance Tracking Program.
In 2012, the advocacy group, United Against Nuclear Iran (UANI), started a campaign calling on SWIFT to end all relations with Iran’s banking system, especially its central bank. When you take out a country’s central bank, you basically collapse the country, as they have no access to any funding, including their own.
European-based Swift, has been targeted by the NSA (United States), according to documents leaked by Edward Snowden.
Today, the European Union, United Kingdom, Canada, and the United States finally agreed to remove select Russian banks from the SWIFT messaging system in response to the 2022 Russian invasion of Ukraine.
Although Swift competitors like the Chinese CIPS and Russian SPFS are in development, they are currently dwarfed by Swift. The long term question however must be answered: when will Swift lose its deterrent status?
If crypto exchanges uphold US sanctions against Russia, crypto can succeed, if they don’t crypto can suffer the regulatory consequences.
Specialists have warned that Russia might try to evade sanctions by using crypto currencies. If exchanges, however, decide to respect the global sanctions, it will give the case for crypto a huge boost. It is ,therefore, in the exchanges’ best interest not to mess with the global sanctions against Russia, but to think how they can comply with regulators to limit Russia’s financial freedom, and ultimately its ability to continue the war on Ukraine.
Crypto needs to make a decision: will it be used for good and for freedom? Or will crypto exchanges allow it to be used by the Russian aggressors to circumvent the sanctions?
What are your thoughts?