US Treasury officials have warned that Russian President Vladimir Putin is targeting the use of cryptocurrencies to avoid a wave of economic sanctions as a way out following his brutal invasion of Ukraine.
Putin is also labeled as the newest member of the rapidly growing crypto bro*.
*Someone who has a poor understanding of cryptocurrency or blockchain applications, yet forms a very strong opinion.
According to the Treasury Department, several prominent Russian individuals are also exploring the use of crypto as a way to get out of the pressure of sanctions.
In fact, two entities and 22 individuals were found to be helping finance Putin's war through digital assets, while Treasury assistant secretary Elizabeth Rosenberg commented that blockchain-based currencies could be used to circumvent sanctions.
It is understood that the warning was made while the Senate Committee on Banking and Housing and Urban Affairs discussed the next obstacle that will occur against Russia.
Russia has also reportedly developed its own digital currency as early as February to enable trade with other countries without having to convert it into dollars.
And Russia developed technology to hide the origin of transactions because crypto exchangers can usually be traced back to the blockchain.
In the meantime, Rosenburg stated that blocking crypto mixers would be the best way to crack down on foreign entities trying to misuse digital assets and launder funds.
He added that he will not tolerate money laundering by Russian criminals, Iranians, North Koreans or others.
On a different source, the Treasury has previously warned that crypto exchangers do not conduct background checks and anti-money laundering regulations like banks do.
