US to start monitoring cryptocurrency transactions of Russians

The U.S. House of Representatives has supported the Russia Cryptocurrency Transparency Act. After its final passage by the Senate, Russia will not be able to defend itself against sanctions by using cryptocurrencies. According to the bill, the U.S. Treasury Department and the State Department are to investigate and report to Congress on the following issues

• attempts to use digital assets to circumvent sanctions imposed on Russian officials due to Russia’s full-scale military aggression against Ukraine;
• attempts by sanctioned persons to use DeFi services, exchanges, exchangers or cryptocurrency wallets to make payments;
• assessing the effectiveness of using digital currencies to comply with sanctions;
• distribution of digital assets aimed at «US national security interests»;
• actions of the US government in combating Russian attempts to evade sanctions.

U.S. government agencies will also explore how best to assist Ukraine in its economic development. The government will ensure that humanitarian aid is provided quickly and does not rule out the possibility that it will use blockchain and cryptocurrencies to do so. The bill provides for the appointment of a responsible official who will deal with digital currencies in the context of sanctions. Now everyone is waiting for the next stage of work — the adoption of the bill by the Senate.

As a reminder, starting in 2023, the terrorist country plans to use cryptocurrencies to circumvent sanctions. Russian Prime Minister Mikhail Mishustin has instructed the Ministry of Finance, the Central Bank, the FSB and a number of other agencies of the occupying country to agree on draft laws to regulate the issue and circulation of digital currency, as well as its use in international payments by December 19. The government also ordered the Ministry of Finance to develop ideas for the use of digital assets, including decentralized technologies.