According to sources, the Biden administration, cryptocurrency demanded its exchanges to prevent individuals and organizations sanctioned by the United States from circumventing these sanctions using virtual currencies.
The White House National Security Council and the Treasury Department have sought the help of the executives of some of the world’s largest trading platforms to thwart attempts to evade the drastic economic restrictions put in place by the United States and its allies after Russia invaded Ukraine last week.
The Biden administration has requested that Russian individuals and institutions be blocked from using cryptocurrency exchanges in order to prevent Russia from circumventing sanctions. -Bloomberg
— Bitcoin System (@bitcoinsystem) February 28, 2022
“Cryptocurrencies Cannot Replace US Dollars in Russia”
Treasury Department and White House spokespersons declined to comment on talks with cryptocurrency exchanges. A White House official said that while cryptocurrencies cannot replace the heavily used US dollar in Russia, American authorities continue to aggressively fight any potential misuse of digital assets to evade sanctions.
This move of the Biden administration, expulsion from the SWIFT system that connects financial institutions, and these sanctions of Russia, which is subject to sanctions. bitcoin and against the possibility of trying to drill using cryptocurrencies. The US’ desire to restrict Russia’s access to digital assets also highlights the critical role such assets play at times when global security is under pressure.
So far, US officials have asked some major crypto exchanges, including the world’s largest cryptocurrency exchange Binance, to take a targeted approach towards institutions and individuals who have only been sanctioned due to legal concerns. FTX and Coinbase exchanges are also working with the Biden administration.
*Not investment advice.