According to financial sources and company executives, Russians are trying to flood cryptocurrency companies in the United Arab Emirates with demands to liquidate billions in order to save their fortunes. Reuters.
According to insiders, some want to buy real property in the UAE while others want it to be converted into fiat and hidden elsewhere.
Russians fear Switzerland will freeze assets
One crypto company received a lot of requests from Swiss brokers asking for liquidation of billions in Bitcoin. This was because their clients were worried that Switzerland might freeze the funds. A representative from the firm said that all requests were for at least $2 billion. They added:
In the last two weeks, we’ve had five to six. None of them have come off yet – they’ve sort of fallen over at the last minute, which is not rare – but we’ve never had this much interest. We have one guy – I don’t know who he is, but he came through a broker – and they’re like, ‘we want to sell 125,000 bitcoin’. I was like “What?” This is $6 billion guys. They’re like, “yeah, that’s $6 billion guys.”
UAE is considered safe haven
Russia believes their money is safe in the UAE, even though it has refused to side against either Russia or Europe. Real estate brokers claim that a lot of Russians, and some Belarusians, have been visiting Dubai to bring their crypto and other funds.
Sources in Dubai confirmed that Russians have purchased real estate in Dubai. They use crypto to access their resources in the UAE and other countries.
Russian accounts are being blocked by crypto-exchanges
Although details are scarce, cryptocurrency exchanges claim they block accounts from sanctioned Russians. Binance, Coinbase and others are working with law enforcement to prevent crypto being used to circumvent sanctions.
Crypto still provides anonymity. Germany, Estonia and other European countries requested tighter oversight to eliminate loopholes that could permit Russians to evade sanctions.