IMF denied Russia’s ability to circumvent sanctions with cryptocurrencies

The head of the organization, Kristalina Georgieva, said that monitoring compliance with Western sanctions against the Russian Federation has not weakened

21.04.2022 - 14:20

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What’s new? The Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva believes there is no conclusive evidence of the use of cryptocurrencies by the government, companies, or individuals to massively circumvent sanctions in Russia. She said this at the Spring Meetings 2022 conference.

Information on the IMF’s website

What else did Georgieva say? She clarified that the IMF closely monitors Russia’s actions and monitors compliance with Western sanctions against the country. Georgieva also mentioned that the Russian Federation is actively working in the field of a central bank digital currency (CBDC), as well as China, the European Union, and the United States.

What had happened before? Russia’s alleged use of cryptocurrencies to circumvent sanctions has become a constant topic of discussion. In early March, the US Financial Crimes Enforcement Agency (FinCEN) published an appeal regarding sanctions against Russia. The regulator asked cryptocurrency-related financial institutions to report any activity that may be seen as a way to evade restrictions.

In late March, Deputy US Treasury Secretary Wally Adeyemo said that the country will hold accountable for any cryptocurrency company that tries to help Russia bypass sanctions. According to him, so far Russia has not been able to circumvent economic restrictions but is trying to do so.

In April, the IMF experts published the “Global financial stability report.” It was reported that mining on energy-intensive blockchains such as bitcoin will allow countries to monetize energy resources whose exports will be blocked due to sanctions.

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