By Alicia Maher
In the wake of the sanctions invoked against Russia for their invasion of Ukraine, the U.S. Department of Treasury has disclosed the federal agency is yet to detect any suspicious moves regarding the evasions of the sanctions. Secretary Janet Yellen confirmed on Wednesday, that the authorities have undetected any significant sanction evasion from Russia.
Rumors quickly spread that Russia could evade the blockades imposed by the West via cryptocurrency, given the insufficient laws backing a country to stop another country from using virtual assets. Kraken pointed this out and withdrew immediately from supporting the ban of Russian crypto users.
There were also claims that the Bank of Russia made some moves to speed up crypto adoption following the waves of sanctions. However, the rumors were dismissed following the confession of Chainalysis at the Banking Committee that it found no proof of evasion by Russia.
Yellen Explains Crypto Potentials in Facilitating Invasion
The Treasury Secretary went before the House Committee on Finance to state the chances of Russia using cryptocurrency to circumvent sanctions. Although the chances of evading sanctions via virtual currencies are high, its value in boosting the Russian economy is slim.
Yellen said the decentralized nature and openness of blockchain reduce the risks of blockade evasion. Plus, regulations imposed on cryptocurrency exchanges are clear enough.
Speaking of whether Russia has evaded any economic sanctions through virtual assets, Yellen said no “significant” evasion has been recorded thus far. She said that relevant authorities would continue to monitor the situation carefully to prevent any circumvention.
The former head of FinCEN, Michael Mosier, was doubtful of crypto being used to scale up things in a large economy like Russia, adding that it would need more to sustain the economy.
The US Prepares for More Sanctions Against Russia As New Legislation is Introduced
On Wednesday, President Biden announced that Russia could face more sanctions for alleged war crimes in Bucha, Kyiv. Based on findings, the sanctions could target Sberbank, Alfabank, and President Putin’s adult daughters.
On the same day, Congress introduced a bill that would give Biden the veto to shut down any transactional transfer involving Russian users. The legislation would also enable the President to sanction any exchange abroad that continues to facilitate transactions involving Russian users.
The bill implies that exchanges unwilling to comply with the sanctions against Russia could face grave consequences for their actions. If the bill passes through, exchanges like Coinbase could face serious troubles.
Yellen’s statement before the committee reignites the dire need for global crypto regulation. Due to sanction evasion, the EU has given the go-ahead to implement crypto laws that could go hard against exchanges.
The laws would compel crypto firms to submit transfer details of those involved in transactions, regardless of the size. The body is also looking at regulating non-custodial wallets and assets like Minero, which make it hard for authorities to track activities due to its anonymity.
HeraldSheets.com produces top quality content for crypto companies. We provide brand exposure for hundreds of companies. All of our clients appreciate our services. If you have any questions you may contact us. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors and the views expressed in them do not reflect the views of this website. Herald Sheets is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.