US Treasury to Monitor Crypto Industry to Inhibit Russia from Escaping Sanctions

  • Senate Democrats revealed concerns about possible crypto use by Russia to bypass sanctions.
  • Yellen said the United States would closely monitor the crypto market.
  • The Treasury said cryptocurrency isn’t the only escape sector.

Janet Yellen, the US Treasury Secretary, said the United States would oversee the possible crypto use by Russia to evade sanctions. That comes as some Senate Democrats expressed concerns about Russia using this new asset class to avoid sanctions.

Senate Democrats Raise Crypto Concerns Amid Sanctions

Some Senate Democrats sent the Treasury a letter, seeking more info on how the Treasury Department ensures that Russia is not using digital currencies to bypass the imposed sanctions.

Lawmakers like Senate Banking Committee Chair Sherrod Brown and Elizabeth Warren worried that crypto companies might not follow the new industry rules. They also requested info on how watchdogs will enforce limitations that the United States imposed on Russia after the Ukraine invasion.

The Democrats added that crypto trading had seen upsurges since the West announced sanctions. For instance, Bitcoin gained more than 16% within the previous 48 hours. Senators asked clarifications on collaborations between government officials and the Treasury’s Foreign Assets Control to confirm whether more tools are necessary to ensure compliance.

Yellen said that the crypto market is not the only sector to evade sanctions.

Though top crypto exchanges, including Coinbase, Kraken, and Binance, refused Ukrainian Minister Mykhailo Federov’s request to suspend Russian addresses, the platform follows applicable sanctions imposed against Russia.

Leading crypto trading platform Binance revealed taking needed steps to comply with the new monetary rules. It added that it would be ready to apply further actions amid widened sanctions.

Sanctions See Russians Joining Crypto

Ruble trading volume against leading cryptos, BT and USDT, skyrocketed as the western attacked Russia with sanctions. Meanwhile, the Ruble plunged against the US dollar and Bitcoin.

Citizens adopted cryptocurrencies to escape the plummeting Ruble and ensure access to international financial systems. Moreover, Ukraine noted surged crypto trading volumes following the invasion. That came as the Ukrainian government introduced crypto donations support.

Stay tuned for the latest developments in the crypto market.

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