Thursday, September 29, 2022

Senator Elizabeth Warren Announces Bill Addressing Russia Sanction Evasion

United States Senator, Elizabeth Ann Warren of Massachusetts announced earlier today the adoption of a bill that will disrupt crypto firms’ activities with sanctioned organizations. The sanction compliance bill is solely targeted towards foreign virtual asset service providers especially those of Russia.

The bill was announced at the hearing of the Senate Banking Committee and is titled the Digital Assets Sanctions Compliance Enhancement Act. The Sanction Act will grant authority to the United States president to add crypto companies that are not based in the US to the list of sanctioned companies if they support Russia’s sanction evasion.

The Digital Assets Compliance Enhancement Act was propagated amid the Russian-Ukraine war. After many organizations, especially financial institutions, withdrew their services from Russia to coerce the nation into ending the attack on Ukraine, Russia moved towards crypto as a lifeline for their financial obligations.

The US and some firms suggest that crypto may just be Russia’s tactic of evading the sanctions it has been placed on. Warren was concerned and unsatisfied with contrary opinions. Her interest in this pushed her to speak to Jonathan Levin, Chainalysis CSO. 

She posed a question to him to find out the level of ease it would take for Russia’s oligarch to shield behind crypto to evade the sanction. Levin’s response insinuated that it might be a hard task as even small amounts of crypto cannot be disguised.

Although Brian Armstrong, CEO of Coinbase while talking about the exchange’s decision not to place a ban on Russia, had earlier mentioned that the crypto ecosystem is not vulnerable to Russian terrorism as it is easier to trace criminal transactions on the blockchain open ledger than a physical bank.

Sanction Compliance Structure Set Rolling

The US Treasury will also be on the lookout for US-based crypto exchanges that will perform trade with wallet addresses based in Russia. The United States users have been warned to desist from such acts.

Also, crypto transactions bigger than $10,000 will be withheld by the Financial Crimes Enforcement Network (FinCEN) until they are cleared and endorsed. Users who trade in such an amount would have to file a report with the relevant authorities. The bill has not been included in the US Congregational dossier, but a concluded draft is available.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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