Economist Alex Kruger has warned that crypto assets will be adversely affected if Russia turns to cryptocurrencies to evade sanctions.
Kruger told his 123,700 Twitter followers that the use of crypto to circumvent sanctions in Russia will receive a serious response from US regulators.
“It would be a terrible fallacy for Russia to use crypto to circumvent sanctions.
Don’t expect this to happen.
But be careful what you wish for.
US regulators will be driven to crush the industry as a matter of national security.”
The United States, along with its allies and partners, imposed various sanctions on Russia after it invaded its neighbor Ukraine. The sanctions also include the separation of Russia’s leading financial institutions from the US financial system.
According to the economist and trader, prices of crypto and other assets such as stocks and commodities have bottomed out after the plunge caused by the Russia-Ukraine conflict.
But while Kruger thinks that the prices of crypto and other assets have bottomed out, he also thinks that the situation could worsen if the conflict leads to nuclear weapons.
“How things could get worse:
– China’s invasion of Taiwan
– Russia’s invasion of more countries
– Nuclear weapons
Other than these scenarios, the market has already taken the worst-case scenario and parried it.
This happens in every gunfight. This (Russia-Ukraine) could have been different as it has been bigger than any conflict for decades, but the market didn’t say so.”
Finally, at the time of writing, the leading cryptocurrency is trading at $ 38,701.