As the United States becomes increasingly concerned about sanctions evasion via cryptocurrencies, the new bill requires Congress to be notified of all crypto aid provided to Ukraine.
of SpecificationThe bill entitled “Russia’s Cryptocurrency Transparency Law” was debated by the House of Representatives on September 19th.
The bill seeks to appoint a Director of Digital Currency Security to the Office of Economic Sanctions Policy and DOS Enforcement. The Director assesses how cryptocurrencies affect the US sanctions regime and develops and implements crypto-resilient sanctions policies.
The bill would require the Secretary of State to notify the Committee on Foreign Affairs and the Committee on Foreign Relations at least 15 days before paying out cryptocurrency rewards. The bill refers to rewards for the Department of State’s (DOS) Justice Program, which funds information that helps prevent acts of international terrorism.
The bill requires DOS to file a report explaining why it chose to be paid in cryptocurrency. The report should also include a list of all crypto rewards already paid out by DOS. According to the bill, the report would have to include evidence explaining why cryptocurrency payments are likely to put whistleblowers ahead of the U.S. dollar.
Additionally, the report asks the Secretary of State to determine how the use of cryptocurrencies by the State Department will affect the dollar’s status as the world’s reserve currency, and whether it will lead to an increase in funds used for illegal activities. I am asking you to
The bill also requires a report on the role of cryptocurrencies and blockchain in providing humanitarian assistance to Ukraine and promoting economic development. According to the bill, the report will include how blockchain and cryptocurrencies can help aid or resettle Ukrainian refugees and increase efficiency, accountability and transparency of aid provided to Ukrainians. must be included.
Fear of Russian sanctions evasion
Additionally, the bill would require the Secretary of State, in consultation with the Secretary of the Treasury, to submit a report on the extent to which digital currencies could affect the effectiveness and enforcement of U.S. sanctions against the Russian Federation. doing.
According to the bill, the report should include a description of the Russian Federation’s efforts to use virtual currencies and Web 3.0 tools to evade sanctions. It should also include an assessment of how the use or adoption of cryptography may undermine national security, sanctions and anti-money laundering efforts.
Additionally, the text of the bill states that the report should also include actions taken by the United States to work with the private sector to combat sanctions evasion.
The United States imposed sanctions on Russian targets in late February 2022, days after Russia attacked Ukraine. In his executive order, President Joe Biden cited the threat of Russians using cryptocurrencies to evade sanctions.
Lawmakers explicitly called on cryptocurrency exchanges to comply with sanctions and cut off services to all those subject to sanctions. Some cryptocurrency exchanges were hesitant at first, but eventually gave in. However, a Chainalysis investigation found a lack of evidence to suggest that cryptocurrencies are being used to evade sanctions.