The impact of the Russia-Ukraine conflict on cryptocurrency

Photo by Jakob Owens on Unsplash Thousands of Canadians joined a truckers’ protest movement called the “freedom convoy” to oppose government health measures just days before Russia invaded Ukraine. To support the protest movement, organizers launched a GoFundMe fundraising campaign. The social funding platform, however, seized the approximately $10 million in donations raised, alleging that the movement failed to both prohibit the promotion of violence and harassment and adhere to sanctions imposed by Canadian authorities. To avoid seizures and continue funding their movement, organizers quickly turned to the world of cryptocurrency. In just a few days, they raised nearly $1 million. At the same time, the Ukrainian government has expressed enthusiasm for the use of cryptocurrency, allowing the country to obtain significant financial support for its defense very quickly. Our research into the digital transformation of the accounting profession has led us to investigate the world of cryptocurrency and how it is regulated. As the conflict between Ukraine and Russia continues, countries’ interest in regulating cryptocurrency has never been more pressing. The conflict between Ukraine and Russia is more than just a bombing campaign. It is also a digital war, with cryptocurrency being only one component. Quickly available funds More than US$100 million was reportedly raised after a Ukrainian government official tweeted that the country would now accept international aid in cryptocurrency. Initially, two funds were established: one for humanitarian purposes and the other for military purposes. However, as the violence escalated, the funds were merged and completely directed toward supporting the Ukrainian military, where they were used to purchase body armor, night-vision goggles, helmets, medicine, and food for frontline fighters. The government has stated that, while the amount received in cryptocurrency is small in comparison to the total funds granted by international agencies, it was able to receive these funds much faster due to the lack of intermediaries. Bank transfers can take several days to arrive in the accounts of the Ukrainian government. Within a few minutes, the cryptocurrency was deposited. This demonstrates the undeniable utility of cryptocurrency — as it is currently operating and regulated — in assisting, in particular, the financial and economic systems of troubled countries. Cryptocurrency creates a trail of its own. Is it, however, a truly effective and permanent strategy to avoid sanctions? Probably doubtful, especially given the vast sums of money possessed by Russian billionaires and huge corporations. These quantities are unlikely to be completely absorbed by the various varieties of cryptocurrency now in circulation. Furthermore, cryptocurrency’s utility for these types of transactions is only temporary. When funds used to obtain cryptocurrencies are transferred to traditional bank accounts, they become traceable and hence vulnerable to sanctions. Because of law enforcement’s growing skill, cryptocurrencies are becoming less and less untraceable. The battle will hasten the implementation of regulations. In this light, the present digital conflict between Ukraine and Russia will most likely act as a catalyst for the regulatory takeover of the chaotic bitcoin sector. It will therefore be up to each government to create procedures that will allow them to control virtual currencies, in the hopes of achieving some international cohesiveness. __________________________ BitYard Exchange Customer Support: Support@bityard.exchange Business Request: bd@bityard.exchange BitYard Telegram Communities BitYard News & Events — https://t.me/BITYARDNEWS English — https://t.me/BityardEnglish --- The impact of the Russia-Ukraine conflict on cryptocurrency was originally published in BitYard Token Insight on Medium, where people are continuing the conversation by highlighting and responding to this story.
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