U.S. Senator Elizabeth Warren is worried that “cryptocurrencies risk undermining sanctions against Russia.” She urges financial regulators “to take this threat seriously and increase their scrutiny of digital assets.”
Senator Elizabeth Warren Fears Russia Might Use Cryptocurrency To Evade Sanctions
U.S. officials are concerned that Russia is being targeted by sanctions worldwide following the invasion of Ukraine. U.S. Senator Elizabeth Warren worries that Russia could use cryptocurrency to bypass sanctions. On Monday, Senator Elizabeth Warren of Massachusetts posted this tweet:
The risk of cryptocurrencies undermining Russia’s sanctions could allow Putin and his cronies economic pain to be evaded.
“U.S. financial regulators need to take this threat seriously and increase their scrutiny of digital assets,” she added.
Senator Warren’s tweet was heavily criticized in the crypto community. Some called Warren stupid, others suggested she had lied. One person tweeted: “So what you’re saying is that a stateless, permissionless, decentralized, and censorship-resistant currency is out of your control so it must be stopped?”
U.S. Texas Senator Ted Cruz recently stated that Warren is against bitcoin and cryptocurrency as she can’t control them.
Senator Warren’s tweet includes an article by the New York Times titled “Russia Could Use Cryptocurrency to Blunt the Force of U.S. Sanctions.” Jerry Brito, executive director of D.C.-based think tank Coin Center, pointed out some problems he found in the New York Times article Senator Warren cited.
For example, the article mentions “new tools developed in Russia” that can help mask the origin of cryptocurrency transactions. Brito pointed out that the article does not provide any information or reference to these tools. “And to think that ransomware could make up the income lost to sanctions is to misunderstand the scale of the blockade being imposed,” he added, elaborating:
Is crypto possible to circumvent sanctions? It is possible. It could be used on a scale which would weaken the existing measures. I don’t see how.
“Will legitimate crypto intermediaries comply with sanctions obligations? Better than a lot of banks, if recent history is any guide,” the Coin Center executive concluded.
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