Sanctions of the US Treasury Department against crypto operators: how Russian exchangers managed to bypass the restrictions
The United States Treasury Department has imposed sanctions on organizations that helped Russia circumvent restrictions by using cryptocurrencies. The groups that were sanctioned include 13 companies and two individuals. In addition, five companies were included in the list because they are under the control of persons who have already been sanctioned. You can read more about it on the website of the US Department of the Treasury [link](https://home.treasury.gov/news/press-releases/jy2204). Deputy Secretary of the Treasury of the United States, Brian Nelson, noted that Russia is increasingly using alternative payment mechanisms to avoid sanctions and continue financing the war against Ukraine. Therefore, the Ministry of Finance will continue to identify and impose sanctions on companies that facilitate this. Glossary: - B-Crypto: cooperates with the sanctioned "Rosbank" to simplify international payments of Russian exporters using cryptocurrencies; - Masterchain: agreement on the issuance of digital financial assets with the sub-sanctioned "VTB Bank" and "Central Bank of Russia"; - Laitkhaus: cooperation with sub-sanctioned Sberbank and VTB in the field of exchange and transfer of digital financial assets; - "Atomize": operator of digital financial assets, which works with Russian companies for tokenization of precious metals and diamonds, cooperates with "Rosbank" and "Sovkombank"; - "Center for the Development of Electronic Payment Means" (Netexchange and Netex24): manages a virtual currency exchange that allows digital payments in rubles and virtual currencies sanctioned by "Sberbank", "Alfa-Bank" and Hydra Market; - Veb3 Technologies and Veb3 Integrator: provide blockchain-based solutions and platforms in the Russian financial sector. Their clients include Sberbank and Alfa-Bank, which are also on OFAC's list. Links: - [link 1](https://home.treasury.gov/news/press-releases/jy2204): US Department of the Treasury Links: - Bitfingroup - Crypto Explorer (AWEX) - Echelon Technologies - Echelon Training Center - Key Information Systems LLC - Echelon Innovations - Project Consulting Bureau Echelon - Cybersecurity Laboratory What this means: Now any property and shares located in the US or owned by Americans will be blocked. Organizations that directly or indirectly, individually or jointly with others, are owned by 50% or more of the sanctioned owners will also be blocked. What is known: - Blockchain tracking of cryptocurrency transactions is an integral part of cybercrime and sanctions evasion investigations. This is due to the fact that such transactions are difficult to trace, so they are widely used for illegal operations. - A year ago, the US Tax Service promised to help the government of Ukraine in identifying oligarchs from Russia who are evading international sanctions. This included the ability and skills to track transactions on the blockchain. - From September 2023, the largest cryptocurrency exchange Binance announced its complete exit from the Russian market. She sold her business to CommEX, a crypto exchange. The Russians were given the option of offshoring - they had to switch to CommEX or close their accounts and withdraw assets within a year of closing the deal. - But on March 25 of this year, it became known that CommEX is stopping part of its services and closing its website.
Answers to questions
What sanctions did the US Treasury Department apply?
How did Russia try to circumvent the sanctions?
Which companies were sanctioned and what are their connections with Russia?
Why will the Ministry of Finance continue to impose sanctions on companies?
What consequences can there be for organizations that have come under sanctions?
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Discussion of the topic – Sanctions of the US Treasury Department against crypto operators: how Russian exchangers managed to bypass the restrictions
The US Treasury Department has eased sanctions on companies and individuals that helped the Russian Federation evade US restrictions through cryptocurrencies. Details on the US Treasury website.
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Oliver
Interesting information! Unfortunately, the business of these companies will be significantly limited now.
Sophie
It's incredible how quickly things change in the world of cryptocurrencies. This supports innovation in payment security technologies.
Max
Yes, quite expected. However, it can also lead to the emergence of new, more reliable companies in the sector.
Julia
Apparently, this will add even more competition among businesses developing the virtual asset market.
Leonardo
This is an important step in the fight against the financing of conflicts. Perhaps this will contribute to a more stable development of the market.
Charlotte
The rapid development of technologies requires the adaptation of government institutions to new challenges. This is an interesting discussion!
Grumpy
These cryptocurrencies and sanctions are a strange thing. What can be useful here? It is better to stay away from this hype.