Ukraine’s crowdfunding shows one avenue for financial relief, but can regulators stand by it?

Chris DePow (https://www.linkedin.com/in/chris-depow-25684912/) is Senior Adviser – Financial Institution Regulation & Compliance, Elliptic.

In early February 2022, writes Chris DePow, Elliptic data and analytics uncovered evidence that Ukrainian NGOs and volunteer groups were crowdfunding for war, using cryptocurrency wallets to fund soldiers, weapons and medical supplies. This is, at the very least, innovative use of alternative finance as an avenue for funding unorthodox causes by unorthodox means. But how far can this method of financial transfer continue unchecked by regulations and the compliance professionals who uphold them, and could this present a blueprint for ‘alt-fundraising’ for the future?