On Venezuela’s Footsteps? Crimea To Leverage Crypto To Circumvent Foreign Sanctions

The Crimean government is considering establishing a cryptocurrency fund to attract the foreign investors and circumvent foreign sanctions. Looks like Crimea is taking a page from Venezuela’s diary as a few months back the country launched its own cryptocurrency petro with the same motive.

Crimea considering a cryptocurrency fund for foreign investors

According to the local media sources, the Crimean authorities are considering creating a cryptocurrency fund for foreign investors in order to circumvent the sanctions imposed by a number of foreign countries.

Georgy Muradov, the Deputy Prime Minister of Crimea who is also the permanent representative of Crimea under the President of the Russian Federation said that this fund would be accepting the investment in cryptocurrency form. These cryptos can be then exchanged for fiat currency which will be used to finance the projects on the peninsula.

Muradov told a group of reporters:

“We are discussing ways to avoid sanctions. One of these methods is the creation of a cryptocurrency investment fund in Crimea where we will accumulate cryptocurrency resources, transfer them to normal money, and then use them for the realization of any kind of investment projects on Crimean soil.”

Another news channel quoted him as saying that crypto “is a way of avoiding settlements in US dollars, euros, from currency restrictions with respect to Crimea.”

He further talked about the Yalta International Economic Forum (YIEF) where the topic of crypto fund will be discussed along with the investment of foreign private companies in Crimea economy.

This is the fourth Yalta International Economic Forum that will be held from 19 to 21 April. It has been estimated that about 3,000 people from 60 countries would be a part of this forum.

Also, read: Brazil And Chile Crackdown On Crypto, Rough Road Ahead For Crypto Exchanges

To attract foreign investors & circumvent sanctions

Anatoly Aksakov, the head of the Duma Committee on the Financial Market appeared at this Forum in Crimea which was underway, the following day and pointed towards having the ICOs and crypto exchanges permitted in some jurisdictions.

It’s unclear how it will pan out as the bill put restrictions on the circumstances under which ICO can be conducted. However, the Deputy Finance Minister, Alexei Moiseev has previously talked about the possibility of using ICOs to bring money into the economy along with allowing crypto payments to attract foreign tourists.  

In February, Venezuela, the country which is going through economic crisis, launched its very own cryptocurrency petro through ICO in an attempt to attract foreign investments and bypass the US sanctions. As a result, US government issued an order that barred any American citizen from participating in this ICO.

Though there hasn’t been any proof, the Venezuelan government claimed that petro raised about $750 million in its opening sale.

Now, Crimea is considering a cryptocurrency fund to use in foreign investment and circumvent foreign sanctions as well. We would just have to wait and see if it gets a green signal and in case it does if it will pay off.

Do you think a cryptocurrency fund will be able to help Crimea’s economy?