Concerned about Russia’s potential to use crypto to avoid sanctions, in a letter to Janet Yellen, the Treasury Secretary, several senators asked for stronger enforcement of sanctions compliance in the crypto industry and asked how such compliance could be guaranteed.
Yellen replied that the US Treasury Department is constantly monitoring the situation, looking for potential leakages and solutions to such cases. She also stated that there is currently no reason for concern.
In their letter to Yellen, senators also asked if there is a possibility to collaborate with other countries and financial institutions in order to avoid a scenario in which cryptocurrencies would be used to evade international sanctions against Russia.
For now, most major exchanges proved compliance with applicable sanctions, although many refused to freeze all accounts owned by Russian citizens.
In a recent Twitter post, Jake Chervinsky, Blockchain Association Head of Policy, gave another perspective on the issue. He said that the claim that Russia could use crypto technology to evade sanctions is unfounded, and reflects a misunderstanding of how cryptocurrencies and sanctions work.