Cryptocurrencies and digital assets; This year has made significant progress after institutional giants and countries like El Salvador have incorporated Bitcoin and crypto assets into their financial ecosystems. But this development has become a growing concern for the Biden administration. According to the Sanctions Review Report released by the US Treasury Department, digital assets undermine sanctions programs initiated by the US. According to the official report:
“All of the technological advances such as digital currencies, alternative payment platforms and new ways to hide cross-border transactions; It has the potential to reduce the effectiveness of American sanctions. These technologies allow malicious actors to hold and transfer funds outside of the collar-based financial system. They are also empowering our competitors who are trying to build new financial and payment systems aimed at reducing the dollar’s global role.”
The US dollar is the currency of trade in the international trade market, and the US has imposed at least 9,000 sanctions against businesses and countries found to be violating different regulations. However, crypto assets have become quite popular among countries that have been sanctioned for passing restrictions. For example, recently Iran has advocated the use of Bitcoin for international trade deals.
US Treasury Wants to Deepen Its Knowledge of Digital Assets
In terms of digital assets, the Official review report makes two key recommendations. Above all, the Treasury wants to ensure that administrative sanctions are simple, understandable, enforceable and adaptable. Alongside this, the report also states that the agency needs to expand its knowledge of emerging digital assets and services to support the full enforcement process of activities.
“In particular, the Treasury should invest in deepening its corporate knowledge and capabilities in evolving digital assets and services to support full enforcement of activities.”
The Biden administration was also the first to significantly address the ransomware threat and not issue warnings of such attacks.