Cryptocurrency Sanctions Evasion ‘Already Happening’

Cryptocurrency Mining Politics Regulation Russia
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Tim Alper
Author Categories
About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more

A financial expert believes cryptocurrencies are already playing a role in Iran and Russia’s fight against economic sanctions – and says the states’ government may turn to miners for further assistance.

Source: iStock/oushie

Per a report from Russian media outlet 360, Alex de Vries, Senior Consultant and Blockchain Specialist at PwC, says that “bypassing sanctions using cryptocurrency is a reality.”

De Vries is also quoted as saying, “It’s already happened in the past – for example when PayPal blocked transfers to [pro-Russian activists in] Ukraine in 2014. Cryptocurrency ownership spiked then. Blocking transfers to wallets was impossible. One would never even know that the recipient was in [Eastern] Ukraine because the system is considered to be pseudo-anonymous.”

A recent report claimed that Venezuelan authorities have been using bitcoin to dodge sanctions at an airport in the country since 2018, and now wish to expand their crypto-operations.

However, the 360 report concludes that cryptocurrencies are not a silver bullet for sanctions. De Vries stated that only individuals and smaller companies are likely to sidestep economic restrictions using cryptocurrency transactions. Larger corporations like as Boeing, said the report, “will not work with Iran in any case, even if they are paid in bitcoin.”

Instead, mining could provide another means of income for countries like Iran and Russia. Per Iranian news agency Mehr, the Iranian government “endorsed crypto mining as an industrial activity” on July 29, although would-be miners in the country will need to obtain permits from the Ministry of Industry, Mining and Trade. Miners must also pay tax on their earnings, unless, says the report “individuals export cryptocurrencies and bring back the revenues to the country.”

360 claims that there are thought to be some 148,000 mining rigs in Iran.

According to de Vries, Russia has no shortage of cheap electricity available, like Iran. But unlike Iran, Russian weather is much colder, a factor that would let it save a good deal on cooling costs – and “partially help” Russia fight sanctions.
_______________________

_______________________

As previously reported on Cryptonews.com, an American think tank recently claimed that so-called “rogue states” – countries that find themselves at odds with the United States – are increasingly looking to cryptocurrencies and digital tokens as a means to circumnavigate sanctions. More recently, a Russian collective of weapons manufacturers asked the governor of the country’s Central Bank to consider allowing international arms sales in bitcoin or a “minerals-backed stablecoin.”

More Articles

Price Analysis
Will Trump’s Tariffs Boost Bitcoin: Down 5% Again
Arslan Butt
Arslan Butt
2025-02-08 14:39:24
Price Analysis
Solana Struggles: Price Down Almost 15% in a Week – Is It Time to Buy?
Arslan Butt
Arslan Butt
2025-02-08 13:22:54
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors