don’t use bitcoin to evade penalties

The Ministry of Finance finds that cryptocurrencies under the punishments against Russia are “deceptive or structured transactions or acts” with the aim of evading sanctions. It is believed that cryptocurrencies are not suitable for large-scale sanctions evasion.

Bitcoin is part of the sanctions

American companies and individuals are warned by the Treasury Department (and apparently also the White House) that it is not their intention to participate in transactions with bitcoins or other cryptocurrencies to or from Russian entities or individuals that are on the sanctions list.

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Some people are concerned about this possibility of getting out of sanctions, including Senator and prominent bitcoin critic Elizabeth Warren.

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For precisely being Chapter 1, paragraph ii, G., persons involved in: “Deceptive or structured transactions or transactions intended to evade United States sanctions, including through the use of currencies or digital assets or l use of physical assets.”

Unsuitable Cryptocurrency

“The unprecedented action we are taking today will significantly limit Russia’s ability to use assets to finance its destabilizing activities,” quoted a press release from Treasury Secretary Janet Yellen. “Today, together with our partners and allies, we are making significant commitments to limit Russia’s access to these valuable resources,” Yellen said.

Bitcoin and other cryptocurrencies are seen as a way for Russia to evade sanctions. But given the transparent nature of the underlying blockchain technology and the costs of using mixers, for example, it’s not that easy.

Although Moscow is considered by data analysis company Chainanlysis to be a major center for laundering cryptocurrencies captured in ransomware attacks, for example, the US Treasury Department does not see this as a major problem. “Given the scale of what they need to move and where they need to be moved from, cryptocurrencies are not necessarily a cause for concern,” Treasury Advisor Todd Conklin said.

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