Worried Russia Is Using Crypto To Avoid Sanctions, Senator Elizabeth Warren: Cryptocurrencies Could Pave The Way For Putin And His Cronies

The senator is concerned that Russia is using cryptocurrencies to evade sanctions. (Screenshot of @ElizabethWarren Twitter)

JAKARTA – Speculation about Russia using cryptocurrencies to evade financial sanctions received a response from Elizabeth Warren. The senator from Massachusetts is reportedly preparing a bill (RUU) to anticipate this.

Reporting from YahooNews, the attempt was first reported on by NBC. The bill would require banks and other financial institutions to identify customers and transfer them to personal wallets, and regularly report information to the Treasury. But crypto companies insist that there is no evidence of sanctions evasion on their exchanges.

Through his Twitter post, Warren mentioned that the use of cryptocurrencies to avoid economic sanctions must be anticipated. He also urged the US Treasury to ensure cryptocurrencies do not interfere with sanctions imposed on Russia.

“Criminals can use cryptocurrencies to move money in the shadows, opening the door for Putin & his cronies to evade economic sanctions.”

I'll be speaking soon with @Mitchellreports on @MSNBC about my new bill to ensure crypto isn't used by Putin and his cronies to undermine our economic sanctions. Hope you'll tune in! https://t.co/H8iTnA5Ulw

— Elizabeth Warren (@SenWarren) March 8, 2022

“I would like an answer from @USTreasury on how they will ensure crypto does not undermine our response to the Russian invasion of Ukraine.”

Meanwhile, lawmakers fear the Treasury's Office of Foreign Assets Control lacks the power to hunt down crypto criminals. Elizabeth Warren and three other Senate Democrats asked the Treasury Department to list its plans to counter sanctions evasion via crypto platforms, including efforts to cooperate with foreign governments.

Additionally, the senators also detailed methods they suspect Russia is using to evade sanctions, including using the darkweb to move funds, carrying out ransomware attacks, and digital rubles.

On the other hand, the cryptocurrency industry prioritizes anonymity and is decentralized. This is in accordance with the nature of cryptocurrency itself, decentralized which means it is not centralized and no single entity can control it.

In recent days, a number of leading cryptocurrency exchanges such as Binance and Kraken have reportedly refused to freeze Russian users on their platforms. On the other hand, a number of South Korean crypto exchanges such as Upbit, Bithumb, Gopax, and Korbit have taken tough measures by blocking Russian users. Coinbase recently blocked as many as 25,000 users of its platform suspected of engaging in illegal activity.

According to blockchain analytics company Chainalysis, there was a sizable number of cryptocurrency transactions using the Russian ruble and Ukrainian hryvnia in the last week of February. The spike was caused by residents of Russia and Ukraine buying cryptocurrencies with the aim of securing their savings amid the declining value of fiat money.