US Democrats Introduce The Digital Asset Sanctions Compliance Act To Prevent Russians From Using Cryptocurrency.
Strict sanctions on foreign cryptocurrency businesses that deal with Russian enterprises would be possible under a measure unveiled by Democratic US senators on Thursday.
Eleven other Democrats, including Mark Warner and Jon Tester, are on board with Senator Warren’s Digital Asset Sanctions Compliance Act.
Bill Warren’s proposal is not expected to become legislation anytime soon. Still, it might put further pressure on cryptocurrency exchanges already under fire from politicians who believe digital assets are being used to avoid Western sanctions on Russia after it invaded Ukraine.
Cryptocurrencies might enable Vladimir Putin and his cronies to avoid sanctions imposed by the United States and its international allies in reaction to Russia’s invasion of Ukraine, according to Sen. Elizabeth Warren.
Because the crypto markets lack the liquidity to facilitate large-volume transactions, administration officials doubt Russia could utilise cryptocurrency to entirely skirt sanctions. The Treasury Department’s sanctions still apply to digital asset businesses.
Major exchanges like Coinbase and Kraken have said they would not trade with Russian crypto users without a legislative mandate.
Treasury would be required to identify overseas crypto trading platforms that are considered high risk for sanctions evasion and money laundering, and US taxpayers would be required to disclose offshore crypto transactions exceeding $10,000 under the proposed legislation.