Russia Should Not Be Able Use Cryptocurrencies to Avoid Sanctions, US Lawmakers Urge Treasury

The US has unleashed a slew of sanctions targeting Russia's banks, state-owned entities and elites, among others.

By Reuters | Updated: 3 March 2022 18:28 IST

Russia Should Not Be Able Use Cryptocurrencies to Avoid Sanctions, US Lawmakers Urge Treasury

Photo Credit: Reuters

The senators asked that Treasury respond to a series of questions by March 23 on the issue

Highlights

Senators raised concerns that crypto wallets and dark web marketplaces
Biden administration believes Russia would be able to use cryptocurrency
Lawmakers said it was unclear whether OFAC had appropriate guidelines

Senator Elizabeth Warren and three other Democratic lawmakers on Wednesday urged the Treasury Department to ensure the cryptocurrency industry is complying with sanctions imposed on Russia, expressing concern that digital assets could be used to undermine US foreign policy goals.

In a letter sent to Treasury Secretary Janet Yellen, Warren along with Senators Sherrod Brown, Mark Warner and Jack Reed questioned whether the department's Office of Foreign Assets Control (OFAC) had effective guidelines in place to enforce sanctions compliance within the crypto industry.

“Strong enforcement of sanctions compliance in the cryptocurrency industry is critical given that digital assets, which allow entities to bypass the traditional financial system, may increasingly be used as a tool for sanctions evasion,” the letter said.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

The United States has unleashed a slew of sanctions targeting Russia's banks, state-owned entities and elites, among others, following the country's invasion of Ukraine.

The senators raised concerns that crypto wallets and dark web marketplaces could enable sanctioned individuals to hide their assets from public view.

Biden administration officials have said that they do not believe Russia would be able to use cryptocurrency to completely evade sanctions.

Russia ETF Draws Meme Stock-Like Trading Frenzy

“The scale that the Russian state would need to successfully circumvent all US and partners' financial sanctions would almost certainly render cryptocurrency as an ineffective primary tool for the state,” said Carol House, the director of cybersecurity for the National Security Council, during a webinar on Wednesday.

But the Democratic lawmakers said it was unclear whether OFAC had appropriate guidelines to effectively monitor the crypto industry's compliance with sanctions, noting that the agency has become “increasingly reliant upon voluntary self-disclosure.”

The senators asked that Treasury respond to a series of questions by March 23 on the issue, and how the agency ensures that crypto is not being used by maligned actors.

US SEC Looking Into NFT Market for Unlawful Crypto Token Offers

Gaana CEO and Spotify's India chief join us on Orbital, the Gadgets 360 podcast, to discuss India's unique music streaming landscape. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.