The law seeks to increase and strengthen the capacities of the government against exchanges that conduct transactions with Russian addresses. The legislation could affect US taxpayers, who will have to report cryptocurrency operations of USD 10,000 or more to FinCEN.
As the world rejects the conflict between Russia and Ukraine, companies like Mastercard, Visa, and PayPal have stopped their services in the Eurasian country. That adds to the sanctions promoted by the US government and the members of the North Atlantic Treaty Organization (NATO).
Besides tightening the sanctions, the United States has made several warnings and blockades to the government of Vladimir Putin. Joe Biden criticized him for attacking Ukraine and announced another USD 800 million in aid, including weapons to shoot down Russian planes and tanks.
Warren Introduces a Bill on Cryptocurrencies to Toughen the Sanctions
Following the foreign policy of Biden, US Senator Elizabeth Warren recently introduced a new bill to expand the sanctions against Russia. It will affect the entities and individuals of the Eurasian nation, particularly on using crypto assets.
The Massachusetts Senate recently The Digital Asset Sanctions Compliance Enhancement Act of 2022 during a Senate Banking Committee hearing.
Among other purposes, the law aims to increase and strengthen the capacities of the executive branch. In that way, they can act against cryptocurrency exchanges that conduct transactions with Russian addresses.
Warren, a strong opponent of cryptocurrencies, said she was working on a bill to cover all the escape routes Putin could use. Her objective is to prevent the Russian president from being able to evade economic sanctions through cryptocurrencies.
The Treasury Secretary Could Stop Exchanges Conducting Transactions with Russian Wallets
The bill will not only provide President Biden with more power to sanction exchanges. US Treasury Secretary Janet Yellen will also have full authority to curb US-based cryptocurrency exchange and payment operators conducting transactions with Russian wallets.
Among the expanded capabilities of the president, the law would allow him to issue secondary sanctions against Russians that help individuals and entities evade sanctions through cryptocurrencies.
The Law on Cryptocurrencies Could Also Affect US Citizens
US citizens would have to report all their cryptocurrency transactions of USD 10,000 or more they make with offshore entities. The US Treasury Financial Crimes Enforcement Network (FinCEN) would use that information to identify Russian private cryptocurrency wallets.
Warren Says It Is Crucial to Take Those Actions
Elizabeth Warren highlighted the need for taking the actions indicated in the bill. She stated that President Putin and his relatives could move, store and hide their wealth through crypto assets. The official said cryptocurrencies would be a perfect escape route for the Eurasian government to evade the economic sanctions due to its war against Ukraine.
Several countries led by the United States imposed sanctions to prevent Putin and his associates from using the cryptocurrency space. The possibility that Russia might seek crypto assets to circumvent those restrictions has been a conversation topic since they started the invasion of Ukraine.
By Alexander Salazar
