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Currently the compilation that exists between Crypto assets and the war in Ukraine is undoubtedly a topic that everyone should know. This so that we can really understand all the edges of this terrible war.
It is because of all this that in this article we will tell you everything you will need to know about crypto assets and the war in Ukraine, so if you want to know more, we recommend that you stay until the end of this article.
What happened between crypto assets and the War in Ukraine?
Operations with electronic money, and restricts the isolation of cash in local currency from Thursday 24 throughout the territory.
The size made it increase significantly the crypto business in that territory, by giving financial independence to move funds without limitations. In addition, in order to receive financial support, the Ukrainian regime began to accept donations in various cryptocurrencies.
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According to data published by Elliptic, well over u$s70 million has already been raised through well over 100,000 transfers in Bitcoin, Ethereum, USDT, USDC, DOT, and other cryptos. However, in order to sanction Russia for the invasion of Ukraine, the USA and the European Alliance determined to exclude Russian banks of the SWIFT network (platform for international banking transactions).
What measures have caused crypto assets and the war in Ukraine with falling currencies?
In addition, they froze the reserves of the whole world of the Central Bank of Russia, and caused a deep drop in the cost of its currency. In these, other measures were applied to block Russian economic activity, such as the prohibition of Russian commercial ships in certain seaports, disqualification of their delegations in sporting events.
In addition, the suspension of its operations in the territory by monumental organizations such as Apple, Audi, Coca Cola and IKEA. As a result of these measures, the depreciation of the ruble has already exceeded 30% and broke all-time lows.
To avoid bigger sufferings, the Kremlin prohibited the purchase of foreign currency and temporarily closed financial markets in the territory.
Russia's adoption of bitcoin due to crypto assets and the war in Ukraine
This made several Russian inhabitants find in Bitcoin and other cryptocurrencies a way to protect cost and independence to move your funds without limitations. According to a Russian government report, there are already well over 12,000,000 crypto wallets in the territory and it is believed that at least 12% of the population already has some of said digital assets.
What can we say then about crypto assets and the war in Ukraine?
By your side, Ukraine took a step later and on February 18 passed a law to legalize Bitcoin and other cryptocurrencies.. The European territory is ranked fourth worldwide in terms of crypto adoption
Once Vladimir Putin confirmed the beginning of the invasion of Ukraine on February 24, the crypto market was negatively affected by the news. This just like other investment devices like occupations in the stock market.
The cost of Bitcoin fell to u$s34,000 (-15% on that day), however, it immediately rebounded and returned to the values in which it had been consolidating. This market attitude left the strength of cryptocurrencies in test to recover, even in the face of news of effect
What is the feasibility between crypto assets and the war in Ukraine?
Of course, once the sanctions are decreed, buying crypto assets in Russia through existing financial intermediaries has become extremely difficult. It is from there that the defense only served for those who had previously acquired them.
But Those who were farsighted in that regard, managed to flee in Russia from the clutches of their State. Something similar, although less flagrant, took place in the Ukraine and it is important to remember it.
Faced with the danger that the Russian armed force would easily conquer the territory and loot its financial system. On February 24, there was a fairly large rally in Ukrainian hryvnia transactions against different types of crypto assets.
As the fear of a rapid conquest has been subsiding, the purchase flows of crypto assets normalized. Well, the inhabitants themselves who wanted it in this way could continue using the classic channels for such purposes.
More, be that as it may, the truth is that the crypto channel was open and used once pretending that it was urgently essential to do so.
