First time in history, cryptocurrency mining firms are subject to sanctions. US Treasury Department has announced it will take action against Russian virtual currency miners. This information was made public by the IMF in an IMF publication. Statement saying, “the Kremlin may employ these activities to avoid compliance with international economic punishment.”
Cryptocurrencies have not suffered from recent sanctions. Bitcoin consolidated its gains while ‘altcoins’ also performed in green.
Similar Reading| Crypto Quick Look: BTC Hits $42,000; ETH Atches10-Day Peak
For example, Bitcoin is holding at $41,500 – $42,000. It reached a record high of $42,000 on Wednesday. But selling pressure rejected the bulls’ advance and failed to confirm the overcoming of this important resistance level. This crucial step is necessary for the virtual token to win $45,000
Naeem Aslam, head of analysis at AvaTrade, warns that “traders know that Bitcoin has to stay above this critical price level for the’ bulls’ to succeed.” The shortest-term support is now back to $40,000.
The expert cautioned that we need to be cautious. It is the IMF that has been in the news because some countries have used cryptocurrencies to dodge sanctions.
Russia, Iran and other countries Make use of cryptocurrencyTo sell their oil or gas. There is concern, however, that they may be using these resources to mine cryptocurrency, which can provide another source for revenue and avoid any sanctions.
“The IMF’s warning will certainly bring more regulatory attention to crypto companies, crypto exchanges, and crypto mining,” Aslam commented.
U.S. Treasury designates facilitators of Russian Sanctions Evasion
OFAC (the United States Office of Foreign Assets Control) sanctioned Bitriver AG. This holding company, which is based in Switzerland, was authorized to conduct cryptocurrency mining operations. It also has offices in Russia, and ten other subsidiaries. This sanction is first by the U.S. Treasury for cryptocurrency miners. Bitriver can be found amid the token pre-sale known as BTR.
To curb Russia’s influence on cryptocurrency mining and trade worldwide, the U.S. has imposed new sanctions against BitRiver. It operates large server farms, which allow it to sell global virtual currency mining power. The company is also able to help monetize Russian natural assets.
Treasury U.S. Press ReleaseRussia is a country with abundant energy and favorable climates for crypto mining. Mining companies are vulnerable because they rely on import computer equipment and fiat payment, so sanctions can be applied.
The United States aims to make sure that no asset, no matter how complex, the Putin regime can use to reduce the impact of sanctions.”
Altcoins and Bitcoin are Rising Despite the Risks
These risks aside, the market responds positively and sees rises in Bitcoin and other altcoins. The total cryptocurrency capitalization has risen to $1.92 trillion.
Related Reading| TA: Bitcoin Technicals Suggest Bulls Aim Sharp Move Above $42K
Ethereum’s price is currently trading between $3,000 and resistance at $3,200. The cryptocurrency has followed Bitcoin’s behavior and seeks to gain momentum toward overcoming the $42,000 resistance.
Terra is one of the most promising tokens on today’s gainer’s list, up 6%, along with Solana and Polkadot.
Featured Image from Pixabay. Chart by Tradingview.com