Russians Look To UAE-Based Crypto Firms For Safeguarding Wealth

In the chokehold of international sanctions and economic uncertainty, Russians have reportedly been seeking means of getting their wealth out of the country. Reuters reports that one of the ways being explored and used is crypto.

Russians flood Dubai crypto firms with crypto transaction requests

In their quest to find outlets for their wealth, Russians are looking to countries that have not put sanctions against them in place. This is where Dubai and the UAE come in.

Reuters cites executives of crypto companies, who wished to remain anonymous, saying that their firms have received more than usual business propositions from Russians.

 We’ve had like five or six in the past two weeks. None of them have come off yet – they’ve sort of fallen over at the last minute, …but we’ve never had this much interest, one executive said

The firms have fielded enquiries from the Belarusians as well, the report noted. Some of the requests were to convert crypto to cash for stashing in the country or other locations. Requests have also been coming in to buy Dubai real estate with crypto according to one broker at a real estate firm that accepts crypto.

Amid the war, the UAE is one of the countries yet to impose sanctions on Russia. In the past, the two countries have maintained amicable ties, so the flight of Russians to the country is not surprising.

However, concerns persist that Russians that have been marked by sanctions may be going through Dubai to evade the sanctions.

The UAE’s neutrality over the Russian “military operation” in Ukraine may also have implications for its reputation as a global business hub. Already, the Financial Action Task Force (FATF), an international money laundering watchdog, has placed the country on a “grey list” for increased monitoring.

Crypto exchanges globally have been implementing the sanctions

Meanwhile, the crypto industry has persisted in allaying concerns that digital assets can be used to evade sanctions. In educational efforts, market participants including Coinbase’s CEO, Brian Armstrong, have noted that the transparency of blockchain’s made the crypto a poor choice to be used in evading sanctions.

Crypto exchanges have also been playing their part. Binance and Coinbase have revealed that they are cooperating with authorities to ensure that no Russian that is to face sanctions can use their exchanges. Coinbase recently revealed that it had compiled a sanctions list which it checks transactions against.