The US Senator Prepared a Bill to Block Russian Crypto Transactions
In the United States, a bill has been prepared, after the adoption of which the Ministry of Finance will be able to block transactions of cryptocurrency exchanges with addresses of persons from the sanctions lists.
The corresponding bill was presented by a member of the US Senate Banking Committee, Elizabeth Warren, adding that it should prevent Vladimir Putin and his entourage from using digital assets to circumvent sanctions imposed by the world community.
According to the bill, the President of the United States will be able to impose secondary sanctions on foreign trading platforms that work with individuals from the sanctions lists.
The US Treasury Department will have the right to block transactions of crypto exchanges with Russian addresses.
All U.S. taxpayers involved in offshore digital asset transactions greater than $10,000 will be required to file the FBAR tax form to report those transactions to FinCEN.
In addition, the Ministry of Finance will release a public report listing foreign trading platforms that are likely to be used by Russia for sanctions evasion, money laundering or other illegal activities.
And instead of the concept of “organizer of transactions with digital assets”, it was introduced: “any private person who significantly and materially facilitates the purchase, sale, loan, borrowing, exchange, storage, possession, verification or creation of digital assets by other persons, including any communication protocols, DeFi technologies, smart contracts or other software, including open-source computer code.”
The Coin Center, an industry advocacy organization, criticized Warren’s proposal, as the latter definition includes almost all people who manage, use and design the blockchain, even if they have no knowledge or intentions to help Russia evade sanctions.
The Coin Center added that the provisions of the bill are difficult to apply to regulated custodial services like exchanges and nearly impossible to apply to node operators, miners and software developers.
On March 17, the Russian Central Bank included the Sberbank and Lighthouse platforms in the register of information system operators, which now have the right to issue and circulate digital financial assets (DFA) within their platforms.
However, the US Treasury Department said it would monitor compliance with the regime of sanctions imposed against the Russian Federation due to its invasion of Ukraine, including the issue of their potential circumvention with the help of cryptocurrencies.
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