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Crypto firms in the Dubai United Arab Emirates (UAE) are getting several requests from Russians to liquidate billions of dollars worth of digital assets. This is coming when Russians are looking to safeguard their fortunes following the recent sanctions.
Reports have emerged that some clients are investing in real estate using cryptocurrency, while others are turning their digital assets into hard currency and stashing it elsewhere.
Many Of The Requests Are Over $2 Billion
In the past 10 days, some crypto firms have received lots of requests asking them to liquidate billions of dollars in Bitcoin. According to the crypto firms, their clients believe Switzerland could freeze their accounts as a result of the sanctions placed against Russia. According to the firms, all the requests have been over $2 billion.
An executive of one of the crypto firms stated that the company has had about five or six requests for such in the past two weeks. The executive added that the firm used to have such large transactions once a lot, but the several requests within two weeks are unusual.
“We have one guy – I don’t know who he is, but he came through a broker – and they’re like, ‘we want to sell 125,000 bitcoin’, the executive said.
Steps Have Been Taken To Ensure They Don’t Evade Sanctions Using Crypto
Switzerland’s economic affairs secretary (SECO) stated earlier stated that cryptocurrencies are also subject to the same sanctions the country has placed on Russian assets and individuals. As a result, those who are sanctioned will also have their assets frozen in the country.
As Western allies keep dishing out sanctions Against Russian oligarchs, Dubai has emerged as a haven for those looking to keep their funds safe. The region has long been a hub for the world’s ultra-rich, but it has now gained more attention from Russian big-time investors for its refusal to align with the west for sanctions.
Major exchanges such as Binance and Coinbase say they are taking necessary steps to make sure cryptocurrencies are not used as tools to evade sanctions. They said they are partnering with law enforcement on the matter. But regulators are still calling for more rules to cover any loopholes that could be exploited.
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