White House Wants to Make Sure that Russia does not Use Crypto to Evade Sanctions

White House Wants to Make Sure that Russia does not Use Crypto to Evade Sanctions

March 23, 2022 0 By Keith Jacobs

White House has been talking incessantly about the role of cryptocurrencies in the current geopolitical scenario. The POTUS was also expected to issue an executive order concerning cryptocurrency regulations in the country. However, as time has passed, the government is deliberating on several factors that disregard digital assets as a bypass ticket for the Russian oligarchy.

Regardless of the scenario, the White House has proceeded to issue a fresh set of financial sanctions targeting the Russian government. These new sanctions will narrow the involvement and activity of digital assets. At the same time, several legislators from the EU and United States have declared that Russian oligarchs can’t evade sanctions with cryptocurrencies alone.

US Asks Crypto Companies to Ban Russian Accounts

The government of the United States has once again emphasized that all exchange platforms should refrain from allowing financial transactions originating from Russia. The White House declaration also claimed that regardless of the denomination of the currency, the Russian accounts that are marked down should not be able to conduct any transactions.

Financial experts claim that due to the limitation of the liquidity opportunities, Russian officials will not be able to make use of their cryptocurrency reserves. It is not possible to convert billions of dollars of cryptocurrencies into fiat in a short amount of time. A fact sheet published by the US Department of Treasure recently iterated that the state department is closely monitoring all financial channels to keep the Russian government from Ukraine’s military operation.

G7 Alliance

The G7 alliance was formed in 1973 before the international oil crisis. The largest capitalist governments, Japan, UK, USA, France, Germany, Italy, and Canada, are the current members of the group. The members of the alliance group recently vowed to cooperate with the White House on its Russian financial and economic embargo.

Ari Redbord is the head of legal and government affairs at TRM Labs, who recently claimed that based on several limitations of digital assets, the Russian oligarchs could not gain immunity against the legal sanctions of the western bloc. On the other hand, Senator Elizabeth Warren has been working actively on implementing legal sanctions on the cryptocurrency space, presenting it as the hub of illegal activities.