Cryptocurrencies rise in price against the backdrop of sanctions against the financial system of Russia
Prices for cryptocurrencies, including bitcoin, are rising on Tuesday, supported by the introduction of new sanctions against Russia, limiting the work of the country’s financial institutions.
The price of bitcoin by 16:30 Moscow time rose by 7.26% compared to the closing level of previous trading, to $44,675 thousand.
Ether (Ethereum), the second most popular cryptocurrency, rises in price by 6.58%, to $3,007 thousand.
On Monday, Bitcoin jumped in price by more than 15%. On this day, the US Treasury announced the imposition of sanctions against the Russian Central Bank, as well as the freezing of some Russian assets. European countries have taken similar measures.
The isolation of the Russian financial system may lead to the fact that cryptocurrencies will finally stop being traded in the same dynamics with other risky assets, as it has been for the last time, writes Barron’s agency.
“There are many positives in this whole situation (for the cryptocurrency market – IF). In Turkey, many have avoided financial devastation by investing in decentralized currencies such as bitcoin. You can see the same trend in the context of the crisis in Ukraine and Russia,” said the manager Director of Strategic Funds Mark Lopresti.
Meanwhile, the administration of US President Joe Biden fears that cryptocurrencies can be used to circumvent the imposed sanctions. Bloomberg, citing informed sources, said US officials are asking crypto exchanges to monitor transactions carried out by Russian individuals to circumvent sanctions.
Some crypto exchanges have already made official statements in this regard. “Despite my deep respect for the Ukrainian people, Kraken cannot freeze the accounts of our Russian clients without a legal requirement, but the Russians should be aware that such a requirement may be inevitable,” wrote Jesse Powell, head of Kraken, one of the world’s top 5 cryptocurrencies. exchanges by daily trading volume, in his Twitter account on Monday.
“Freezing access to digital assets of citizens across the country does not penalize those who are actually responsible,” a Kraken spokesperson told Barron’s.
Another crypto exchange, Binance, has stated that it is not going to freeze the accounts of Russian users, as this is contrary to the concept of the cryptocurrency industry.
“We are not going to unilaterally freeze millions of accounts of innocent users. Cryptocurrencies are designed to provide greater financial freedom to people around the world. The decision to unilaterally ban people from accessing their cryptocurrencies would be contrary to what this industry exists for,” said a representative of the exchange.