US Treasury Secretary Alleges Crypto Has Not So Far Been Used for Significant Sanctions Evasion Against Ruisa

US Treasury Secretary Alleges Crypto Has Not So Far Been Used for Significant Sanctions Evasion Against Ruisa

US Treasury Secretary Janet Yellen told the House Financial Services Committee on Wednesday that her department is not seeing significant use of cryptocurrencies to evade sanctions placed on Russian oligarchs and agencies. governmental. Yellen was repeatedly asked about the security of digital assets at the committee’s annual hearing on the state of the international financial system.

“We are aware of the possibility, clearly, that cryptocurrencies could be used as a tool to evade sanctions and we are carefully monitoring to ensure that does not happen,” Yellen said. “But I would say that we have a good amount of authority in this area and we are using it and we will use it,” she added.

Using cryptocurrencies to evade sanctions is difficult, Yellen assured the committee, as blockchains are being “regularly examined,” and large transactions will be noted. “[Los exchanges de criptomonedas] are subject to regulations [contra el lavado de dinero/combatir el financiamiento del terrorismo] AML/CFT, so they are part of the financial system,” said. “So far we have not seen significant evasion through cryptocurrencies.”

The Treasury’s Office of Foreign Assets Control announced on Tuesday that it will impose sanctions on the Russian exchange Garantex, for failing to comply with AML/CFT regulations, and on the Russian-language darknet market Hydra for hosting ransomware attacks. The Treasury was one of several US agencies that worked to sanction those organizations.

Sanctions were not the only crypto-related topics on the minds of committee members. Representative Bill Foster asked about digital identity verification. Yellen said his department has “a broad involvement in the digital identity space, in part because we administer public benefits [y] tax refunds,” and assured the congressman that “we are developing actions that we can take to advance this agenda.”

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representative Warren-Davidson, from Ohio, expressed concern about the preservation of self-hosted digital wallets, which characterized as “self-custody of private property without intermediary”.

Yellen will speak Thursday at American University in Washington about US President Joe Biden’s executive order on digital assets and Treasury’s approach to it.

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