The Financial Crime Enforcement Network (FinCEN) will ensure Russia has no opportunity to use cryptocurrencies to escape sanctions related to its military activities in Ukraine.
FinCEN director Him Das also urged financial companies related to crypto assets (or CVCs) in the United States (US) to report all suspicious activity from Russia.
FinCEN believes the claims of reports related to Russian activities are part of US efforts to support Ukraine.
The agency does not want Russia to have a chance to escape even though the economy is already blocked by the decisions of the EU and Western countries.
At the same time, U.S. lawmakers are also concerned about Russia’s moves as it is not impossible for the country to use crypto assets as expected.
As a result, the Office of Foreign Asset Control (OFAC) from the Treasury Department urged all citizens of the country not to use cryptocurrencies to help Russia.
In fact the order is deemed an indication from OFAC that a crypto transaction is a structured or split transaction.
Does this mean Russia will really be stuck in a diagonal blockade?
It is uncertain to what extent the efforts of Western countries will bear fruit because crypto assets are highly decentralized.
Even Russia has actually started a move to allow the issuance of digital assets and it started with Sberbank. Even if Russia's efforts are not successful, China may have a chance to promote the e-yuan.
