The United States Department of the Treasury has issued a review on the sanctions and has suggested that the government do more to develop its infrastructure and policies regarding digital assets.
In a report on October 18, The Treasury Department said the growing use of digital assets was hampering the enforcement of sanctions while balancing funds from legitimate humanitarian organizations. The department suggested that better communication between itself and the cryptocurrency industry, financial institutions and others, as well as “deepening their institutional knowledge and capabilities,” could help improve current policy.
“Sanctions are a fundamentally important tool to advance our national security interests,” said the undersecretary of the Treasury, Wally Adeyemo. “The Treasury sanctions review has shown that this powerful instrument continues to deliver results, but it also faces new challenges. We are committed to working with partners and allies to modernize and strengthen this critical tool.”
The report added:
“Left unchecked, these digital assets and payment systems could undermine the effectiveness of our sanctions.”
According to the report, The Treasury Department suggested that the government adopt a structured political framework, coordinate with allies and partners where possible, ensure that sanctions are understood, enforceable, and adaptable, and enforce them “to mitigate economic, political, and humanitarian impact. not wanted”. The department added that it must be modernized to include “the right expertise, technology and people” to handle the challenges of digital assets.
The US Treasury Department has been employing sanctions as part of the government’s efforts to fight ransomware attacks that threaten the country’s infrastructure, for example when Russia-based DarkSide hackers attacked the Colonial system. Pipeline in May. Last month, the department announced that it would impose sanctions on the Czech Republic, as well as the Russia-based company Suex OTC, for allegedly allowing hackers to access cryptocurrencies sent as payment for ransomware attacks.
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