Russia’s invasion of Ukraine, or what Putin has referred to as a “special military operation” has resulted in widespread sanctions from the international community. The cryptocurrency ecosystem has also reacted to the attack on Ukraine, with the market capitalisation of crypto dipping 9% following the attack, and a number of issues being raised regarding how cryptocurrency could be used by Russia to avoid certain sanctions.
World leaders have condemned Putin’s decision to invade Ukraine, urging Russia to pull back troops and halt the military operation. Statements were issued on Thursday by western nations, many of which have announced sanctions, and universally condemned the unprovoked attack by the Kremlin.
Prime Minister Boris Johnson offered Ukraine the continued support of the UK,condemning Putin for unleashing “war on our European continent”, while German Chancellor Olaf Scholz said February 24th was a “terrible day for Ukraine and a dark day for Europe”, adding Western sanctions would ensure that Russia payed a “bitter price”.
There are concerns by those who support Ukraine, that the Kremlin may be able to avoid future economic sanctions through utilising cryptocurrency such as Bitcoin. However, the use of cryptocurrencies by international players is not limited to their potential for Russian manipulation, and a number of Ukrainian platforms have accepted donations in cryptocurrency.
Ukrainian Vice Prime Minister Mykhailo Fedorov announced on Twitter that the Ukrainian parliament has legalised cryptocurrencies, adding that the new law would bring the sector “out of the shadows.”
Following this, over the past couple of days the Ukraine army has received over $4 million in cryptocurrency donations, according to crypto analytics firm Elliptic, with over $3 million sent from a single donor.
The International response has been prompt, however many in the crypto community have also been swift to criticise the actions by Russia. Vitalik Buterin denounced the actions of the Kremlin, sharing via Twitter that the invasion of Ukraine was a “crime against the Ukrainian and Russian people”.
“I want to wish everyone security, although I know that there will be no security. Glory to Ukraine”.
The Canadian/Russian Ethereum co-founder added:
“Reminder: Ethereum is neutral, but I am not”
FTX CEO Sam Bankman-Fried also shared his condemnation of the events taking place in Ukraine, noting, “if you were in Ukraine right now, where would you trust your money?”
In his message he also stressed the importance of focusing on what was important, and not on how the war impacts the markets, adding: “more importantly, there might be war. That’s really bad for the world. F**k all this price stuff. Go outside and do something nice for someone”.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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