Markets
US Threatens to Block Crypto Assets Linked to Russia
Amid ongoing political tension between the US and Russia, crypto addresses owned by Russian traders could be excluded from the US market.
Meanwhile, Russia has suspended trading in dollars and euros on its main financial market, the Moscow Stock Exchange.
Russia-Linked Crypto Addresses Face US Ban
US politician Brad Sherman requested amendments to the National Defense Authorization Act (NDAA) bill. Archived with the US House Rules Committeethe California Democrat wants a specific provision in the NDAA.
The US Secretary of the Treasury would be mandated to prohibit digital asset trading platforms and transaction facilitators within the US from transacting with cryptocurrency addresses linked to Russia.
“The Secretary of the Treasury may require that no digital asset trading platform or digital asset transaction facilitator that does business in the United States enter into transactions with, or conduct transactions from, digital asset addresses that are known, or could reasonably be known to be, affiliated with persons based or domiciled in the Russian Federation, if the Secretary,” said a clause in the official document archiving.
Namely, this depends on the Secretary determining that the exercise of such authority is in the national interest. The decision depends on the Secretary’s assessment of the broader implications for the national economy security and public welfare.
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Brad Sherman also has a regulation for US taxpayers to move more than $10,000 worth of crypto out of the country. Under the proposed bill, they must file the case with the U.S. Financial Crimes Enforcement Network (FinCEN).
“The Financial 21 Crimes Enforcement Network will require United States persons involved in a transaction with a value of more than $10,000 in digital assets through 1 or more accounts outside the United States to file a report described in section 1010.350 of title 31, Code Federal Regulations, using the form described in that section, in accordance with section 5314 of title 31, United States Code,” the document says.
Sherman also wants the Secretary of the Treasury expose crypto exchanges considered high risk for illicit activities, including sanctions evasion and money laundering.
“That’s actually quite optimistic considering it’s coming from Sherman. This guy has been trying so hard to kill crypto and these two things just prove that he has capitulated and understands that this is not going away,” he said investor Guinness Stache.
Notably, Sherman compared cryptography to drugs and organ harvesting at one point arguing that crypto industry stakeholders don’t want regulations. He is also registered calling encryption an important source of Tax evasion.
Russia suspends US and euro trade
Reports indicate that lawmakers consider the NDAA a must-pass bill, meaning they consider it critical and necessary for passage. They believe it is essential to the functioning of government and the implementation of fundamental policies. Because of their importance, must-pass bills generally have a greater chance of passage than other types of legislation.
“It is important to note here that the annual defense bill is a must-pass piece of legislation and the introduction of seemingly innocuous amendments like this would likely not affect its passage. We may see more changes like this as members try to attach other bills to the NDAA, he said Fox Business journalist Eleanor Terrett.
The change proposed by Sherman comes after Russia’s decision to suspend trading in the US dollar (USD) in Moscow Stock Exchange. This development marks a significant shift in Russia’s financial strategy amid the ongoing geopolitical conflict.
“Due to the introduction of restrictive measures by the United States against the Moscow Exchange Group, exchange trading and settlement of instruments deliverable in US dollars and euros are suspended,” Reuters reportedciting the Russian central bank.
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The move aims to influence other countries’ attitudes towards the US dollar as the dominant reserve currency. On the one hand, it could force investors to diversify their use of the currency.
“We don’t care, we have Yuan. Getting dollars and euros in Russia is practically impossible,” he said a person at a major unsanctioned Russian commodity exporter, economist Sasha Breger Bush reported.
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