Think tank Brookings says private Cryptos may bypass sanctions

Brookings reminded the lawmakers about the negative use cases of privacy focussed crypto assets and claimed that such assets can be used against the violation of the financial sanctions. 

Today is the 16th day of the Russia vs Ukraine war and the situation is going very bad for Ukraine, where leaders of the country are on the verge of losing the battle against Russian military invasions. In support of Ukraine, few leading countries imposed restrictions on trade with Russia, which includes financial sanctions also. Many experts claimed that Russia will bypass such sanctions easily with the use of crypto assets, on the other hand, few people claimed that there are very rare chances for Russia to use crypto to bypass the financial sanctions.

On these things, Influential think tank Brookings shared his stance and explained how Russia may surely bypass the imposed Sanctions with the use of privacy-focused crypto assets like Zchash, Monero, etc. 

Brookings acknowledged this thing through a note published this week, which was authored by Princeton and Cornell professors. 

Through the published note, Brookings asserted that private crypto assets may play a vital role to violate such financial sanctions and also in money laundering. 

Brookings also supported Bitcoin and Ethereum like Cryptocurrencies because of ease of tracing and also to follow the rules under full transparency, where people are using it for trading & investment only. 

Brookings asserted that lawmakers should focus on privacy-focused cryptocurrencies like Monero and also on Decentralized crypto platforms (DEX). 

“While current policy fears about money laundering via cryptocurrency are overblown, there are a few trends that policymakers should be concerned about.”

Note also added: 

“The first is the emergence of and potential mass adoption of privacy-preserving coins, which threaten to decouple the link between crypto wallets and traders’ identities.”

Bitcoin-like crypto assets are better than Cash 

A recent case in which a government investigation agency successfully detained around $4 billion worth of Bitcoins from the hackers, who stole Bitcoin from the Bitfinex exchange.

The hack on the Bitfinex exchange took place in 2016 but after such a long time, hackers, or we can say bad actors of this illegal activity have been successfully detained. 

We can expect that what will happen if people steal cash, obviously in that case it will not be easy to trace them. 

Read also: South Korean citizens selected crypto-friendly President Yoo