Crypto Market Overview – March 7^th, 2022

 

Switzerland Sacrifices Its Neutrality and Supports The Blocking of Crypto-Assets of Russian Citizens

The Swiss government, which has remained neutral in almost all world conflicts, has announced that it will actively help the European Union in freezing the cryptocurrency accounts of Russian citizens due to the invasion of Russian occupying forces into the territory of Ukraine. In an interview with the Financial Times, Swiss Finance Minister Guy Parmelin said the country had already frozen the fiat bank accounts and physical assets of 223 Russians last week, including oligarchs and close associates of putin. Cryptocurrency bans will be an additional sanctions tool that goes beyond the four packages of EU sanctions already implemented. The issue of digital assets is important for Switzerland, as in recent years the country has become one of the largest blockchain hubs in the world and has been called the “Crypto Valley.” According to a report by Swiss venture capital firm CV VC, there were approximately 1,128 crypto companies in Switzerland and neighboring Liechtenstein by the end of 2021. Recall that after the freezing of the assets of RF’s Central Bank and the disconnection of seven Russian banks from the SWIFT financial messaging system, the European authorities decided to take measures to prevent the use of cryptocurrencies as a way to evade the imposed sanctions against the Russian Federation. This was announced on Wednesday by French Finance Minister Bruno Le Maire.

 

Coinbase Refuses to Ban The Accounts of All Its Russian Users

The management of the large cryptocurrency exchange Coinbase, whose office is located in San Francisco, announced its unwillingness to block the accounts of its Russian users because they doubt the desire of Russian officials to use the services of the exchange to circumvent international sanctions imposed due to military aggression against Ukraine. Coinbase also said that they don’t want to block the accounts of clients from Russia, who cannot influence the decisions made by their government in any way. By the way, the services of the crypto-exchange really extend to more than 100 countries, and in many regions the platform was really able to provide the fundamental right to banking services where both the necessary services and infrastructure were absent. However, this approach of the Coinbase leadership contradicts the basic principles of the sanctions, which are introduced so that the citizens of the aggressor countries feel from their own experience that the leaders of their countries make decisions that are contrary to morality, peace agreements and, in the case of an attack by the Russian Federation on Ukraine, common sense. According to Coinbase managers, the refusal to block the accounts of RF’s citizens is an indicator of their liberal attitude towards users. However, some market analysts are already predicting significant reputational losses for the exchange, which may follow the refusal to maintain sanctions.