US govt orders crypto exchanges to comply with sanctions imposed on Russia: Ukraine Crisis
Reportedly US government agencies introduced the official statements for the crypto exchanges to follow the Sanctions imposed on Russia by the US government.
This is the 6th day of the Russia vs Ukraine fight. The majority of the countries are supporting Ukraine and in efforts to slow down the Russian invasions against Ukraine, they are imposing sanctions against Russia to keep the country outside the global financial systems. In the present time, crypto is playing a vital role for not only Ukraine but also for Russia to get out from such sanctions.
On 28 March, Bloomberg published a report on US government orders for crypto exchanges, which may play an important role for the Russian government to prohibit them to bypass the imposed sanctions on the Russian financial system.
According to the report, the Biden administration was already aware of the involvement of crypto assets and the blockchain industry, so they decided to take action for this industry to keep sanctions impact equally like the traditional financial system.
On the last day, Treasury’s Office of Foreign Assets Control published its order for the crypto exchanges to comply with sanctions; entitled The final version of Biden’s 2021 executive order, which prohibits the deceptive or structured transactions or dealings to circumvent any United States sanctions, including through the use of digital currencies or assets or the use of physical assets.
The new orders will come into effect officially on 1 March, which means today.
A leader from global consulting firm Guidehouse, Alma Angotti, shared his stance on this matter and stated that US sanctions on any agency of a country are an automatic order for all the businesses to follow the same Sanctions to step with regulatory systems.
“The emphasis on crypto exchanges could be “marketing….(..)…a way for the U.S. to be “very specific to let sanctioned parties know they are looking for this.”
On 27 February, the Vice Prime Minister of Ukraine, Mykhailo Fedorov, urged all the crypto companies to restrict all political and general citizens’ crypto accounts accounts of Russian regions.
In response to this request, Kraken CEO Jesse Powell responded and claimed that exchanges can’t restrict or freeze any account of innocent users but any law order may work for the same.
Read also: Crypto market recovers to $2 Trillion amid Russia vs Ukraine fight
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