Janet Yellen, U.S. Treasury secretary, stated that the Treasury Department monitors Russian attempts to evade sanctions by using cryptocurrency. Four U.S. Senators wrote to Janet Yellen to express concern about Russia’s use cryptocurrency to avoid sanctions.
Janet Yellen (Treasury Secretary) on Russian Efforts at Using Cryptocurrency To Evade Sanctions
According to the Wall Street Journal, Janet Yellen (US Treasury Secretary) spoke at Wednesday’s University of Illinois event about Russian attempts to evade sanctions through crypto. Yellen said:
We’ll continue to examine the effectiveness of the sanctions and determine if there is any leakage. If so, we will address it.
On Wednesday, four U.S. senators, including Sen. Elizabeth Warren, also wrote a letter to Yellen inquiring about the “Treasury Department’s progress in monitoring and enforcing sanctions compliance by the cryptocurrency industry.”
The senators expressed their “concern that criminals, rogue states, and other actors may use digital assets and alternative payment platforms as a new means to hide cross-border transactions for nefarious purposes.”
Yellen commented on possible use of cryptocurrency to evade sanctions.
I hear cryptocurrency often and it is definitely something to watch.
However, the Treasury Secretary stated that participants in cryptocurrency are subject to both anti-money laundering regulations and sanctions rules.
Many major cryptocurrency trading platforms, such as Kraken, Binance and Coinbase have stated that they work with the government in order to meet sanctions.
However, these cryptocurrency exchanges have rejected requests from the vice prime minister of Ukraine for blocking all Russian users.
Their refusals prompted former first lady and secretary of state, Hillary Clinton, to feel “disappointed.” She subsequently urged the Biden administration to pressure crypto exchanges to block Russian users.
Treasury Secretary Yellen has clarified the situation regarding crypto.
It’s not that that sector is completely one where things can be evaded.
In October last year, the Treasury Department published its sanctions review, stating: “We are mindful of the risk that, if left unchecked, these digital assets and payments systems could harm the efficacy of our sanctions.”
Chainalysis spokesperson said that it hasn’t found any evidence of Russians evading major sanctions in cryptocurrency markets.
What do you think about Treasury Secretary Janet Yellen’s comments? Please leave your comments below.
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