We Will Ensure Russia Cannot Use Crypto Assets to Evade Sanctions – Regulation Bitcoin News

The Group of Seven (G7) countries issued a joint statement stating that they “will ensure that the Russian state and elites, proxies and oligarchs cannot leverage digital assets as a means of evading or offsetting the impact of international sanctions.” Meanwhile, the U.S. Treasury Department is “closely monitoring any efforts to circumvent or violate Russia-related sanctions, including through the use of virtual currency.”

The G7 has committed to ensuring that Russia cannot escape sanctions using crypto

Friday was a joint statement from the G7 leaders regarding new sanctions against Russia. The statement explains that since Russian President Vladimir Putin launched an invasion of Ukraine on Feb. 24, “our countries have imposed expansive, restrictive measures that have severely compromised Russia’s economy and financial system.”

Among the measures the G7 countries have committed to taking further is “maintaining the effectiveness of our restrictive measures, to cracking down on evasion and to closing loopholes.”

Details of the G7 Joint Statement:

In particular, as well other steps to stop evasion of sanctions, we will make sure that the Russian government, its elites and proxy oligarchs can’t use digital assets for the purpose of evading, or compensating, international sanctions.

The G7 leaders noted that this “will further limit their access to the global financial system.” They stressed, “It is commonly understood that our current sanctions already cover crypto-assets.”

This statement goes on:

We pledge to take measures to detect and stop illicit activities and will charge those who use digital assets to transfer or enhance their wealth in accordance with our national laws.

US Treasury Monitors Crypto Sector in an Effort to Prevent Sanctions Evasions

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) also issued guidance Friday “to guard against potential attempts to use virtual currency to evade U.S. sanctions imposed on Russia.” The guidance emphasizes that all U.S. persons must “comply with OFAC regulations, regardless of whether a transaction is denominated in traditional fiat currency or virtual currency.”

“U.S. persons, wherever located, including firms that process virtual currency transactions, must be vigilant against attempts to circumvent OFAC regulations and must take risk-based steps to ensure they do not engage in prohibited transactions,” the guidance reads, adding:

OFAC monitors all attempts to violate or circumvent Russia-related sanctions. It is also committed to using its vast enforcement powers to combat violations and encourage compliance.

Janet Yellen, Treasury Secretary, stated last week that crypto is being monitored by the Treasury to evade sanctions. The Financial Crimes Enforcement Network FinCEN also raised red flags regarding potential sanctions evasion with cryptocurrency.

What do you think about G7 governments’ efforts to prevent crypto use to evade sanctions? Comment below to let us know your thoughts.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.