Ukraine-based shipping firm Varamar Ltd. is reportedly planning to accept Bitcoin as a method of payment in order to bypass sanctions being imposed on certain countries where companies want to do business with the shipper.
By using Bitcoin, the firm will avoid the voluminous amount of paperwork related to international payments, as well as lower fees for all parties involved in the transactions.
According to the firm’s founder Alexander Varvarenko, the use of Bitcoin facilitates the conduct of business with their customers in countries where sanctions are being imposed, as well as reduces the paperwork of the transactions.
“Paperwork for transactions is a complicated issue with banks, and Bitcoin payments will help solve that by being faster. It could also help solve payment problems in countries like Pakistan, Russia, Sudan, Yemen and Qatar, which have safe companies but are victims of sanctions being imposed against their governments.”
Benefits and possible disadvantages of using Bitcoin as payment method
By using the number one digital currency as a method of payment, the Ukrainian shipper can avoid doing business under the table and does not break any law.
This is because Bitcoin is not prohibited as a payment method despite being not recognized as a legal tender in Ukraine. The recent move from Ukraine lawmakers signal that they might move towards exemptingcncy income and gains from taxes. By utilizing Bitcoin, the company and its customers can still sign official contracts for services rendered and anyone who will scrutinize the transactions will find them legal.
However, there may be negative repercussions against the shipping company if it pursues this plan as the sanctions imposed on certain countries have a purpose and are agreed upon by the international community. By circumventing these sanctions, all the parties involved are sure to face the full force of the law once they are caught in the act.