Monetary sanctions are simpler than ever for Russians to evade. Thank Bitcoin

Financial sanctions are easier than ever for Russians to evade. Thank Bitcoin

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But some experts say those measures, which so far do not target Putin himself, are becoming increasingly easy to evade, thanks in part to a surge of cryptocurrency adoption in Russia.

The US and EU sanctions rely heavily on banks to enforce the rules. If a sanctioned business or individual wants to make a transaction denominated in traditional currencies such as dollars or euros, it’s the bank’s responsibility to flag and block those transactions.

But digital currencies operate outside the realm of standard global banking, with transactions recorded on a public ledger known as the blockchain.

“If the Russians decide — and they’re already doing this, I’m sure — to avoid using any currency other than cryptocurrency, they can effectively avoid virtually all of the sanctions,” said Ross S. Delston, an expert on anti-money laundering compliance.

The US Treasury is well aware of this problem. In an October report, officials warned that digital currencies “potentially reduce the…

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