The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has warned that sanctions imposed on Russia must be strictly followed.
This includes considering the sanctions while conducting transactions in cryptocurrency. This means exchanges are prohibited from engaging in or facilitating illegal transactions.
There are concerns from lawmakers and experts that the sanctions placed on Russia could be circumvented using cryptocurrencies.
Major cryptocurrencies including Coinbase, Binance have refused to heed calls to block Russian users on their platforms. Defending their actions, the crypto exchanges stated that taking such a decision goes against the industry’s libertarian values.
The U.S. Treasury Department has reached out to several crypto exchanges and trade groups to explain its expectations for sanctions compliance. The agency also released a line of communication in case of questions regarding clarity.