The Group of Seven (G7) countries released a joint statement saying they “will ensure that the Russian state and elites, proxies and oligarchs cannot leverage digital assets to evade or compensate for impact of international sanctions”. Meanwhile, the US Treasury Department is “closely monitoring all efforts to circumvent or violate Russia-related sanctions, including through the use of virtual currency.”
G7 pledges to ensure Russia cannot evade sanctions using crypto
The leaders of the Group of Seven (G7) countries issued a joint statement on Friday regarding new sanctions against Russia. The statement explains that since Russian President Vladimir Putin launched an invasion of Ukraine on February 24, “our countries have imposed expansive and restrictive measures that have seriously undermined Russia’s economy and financial system.”
Among the measures the G7 countries have pledged to take further are “maintaining the effectiveness of our restrictive measures, cracking down on fraud and closing loopholes”.
The G7 joint statement details:
Specifically, in addition to other measures planned to prevent evasion, we will ensure that the Russian state and elites, proxies and oligarchs cannot use digital assets as a means of evading or offsetting the impact of international sanctions.
The G7 leaders noted that this “will further limit their access to the global financial system”. They pointed out: “It is commonly accepted that our current sanctions already cover crypto-assets.”
The statement continues:
We commit to taking steps to better detect and interdict any illicit activity, and we will impose costs on illicit Russian actors using digital assets to value and transfer their wealth, in accordance with our national processes.
US Treasury Monitors Crypto Sector to Prevent Sanctions Bypass
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) also issued guidance on Friday “to guard against potential attempts to use virtual currency to evade U.S. sanctions on Russia.” The guidelines emphasize that all U.S. persons must “comply with OFAC regulations whether a transaction is denominated in traditional fiat currency or virtual currency.”
“American persons everywhere, including businesses that process virtual currency transactions, must be vigilant against attempts to circumvent OFAC regulations and must take risk-based actions to ensure they do not engage in prohibited transactions,” the guidelines state, adding:
OFAC closely monitors all efforts to circumvent or violate Russia-related sanctions, including through the use of virtual currency, and is committed to using its broad enforcement powers to act against violations. and promote compliance.
Last week, Treasury Secretary Janet Yellen said the Treasury was monitoring the use of crypto to evade sanctions and the Financial Crimes Enforcement Network (FinCEN) raised red flags about potential evasion of penalties using cryptocurrency.
What do you think of the efforts of G7 governments to prevent the use of cryptography to evade sanctions? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Warning: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.