Democratic Senator Elizabeth Warren has plans to prepare a new bill related to cryptocurrency. In case the bill is passed, the new draft will require all the local cryptocurrency exchanges to ensure that they have submitted certain detailed records to the Treasury Department.
According to cryptocurrency updates news today, these reports will be created in regards to the identities of the customers as well as different transfers that are being made to the crypto wallets that are private. This new bill has been created by Warren in order to properly understand the usage of cryptocurrency as a medium of avoiding certain economic sanctions.
The latest anti-crypto move of Warren comes alongside a proper push from the government of the United States of America to figure out how Russia is planning to use cryptocurrency in order to evade the economic sanctions being imposed on the country.
She says that it will also “force companies to choose between doing business in the U.S. or with sanctioned people and entities by threatening secondary sanctions on foreign crypto exchanges.”
Ukraine’s deputy minister of digital transformation Alex Bornyakov has been calling for crypto exchanges to ban Russian users for the past week or so, however top crypto exchanges such as Binance, Coinbase, and Kraken have all said they won’t implement a blanket ban but have emphasized their commitment to being compliant with U.S. sanctions.
Senator Warren has been highly skeptical of the sector for quite some time now, and in 2021 alone she labeled DeFi as the “most dangerous” part of crypto, introduced a bill to study crypto’s role in ransomware, and slammed the Ethereum network for its high fees during a committee hearing. So it’s little surprise to industry observers she has seized the opportunity to push for tougher regulations.
Elizabeth Warren Says The Newly Sanctioned Bill Will Ensure That Crypto Is Safe From Putin
Warren, who was among a group of Senators to write to Treasury Secretary Janet Yellen about the issue last week, noted on Twitter earlier today that her bill will “ensure crypto isn’t used by Putin and his cronies to undermine our economic sanctions.”
While the idea of Russia using crypto to evade sanctions has been grabbing the headlines, experts such as Jake Chervinsky, head of policy at crypto policy promoter the Blockchain Association have argued that the nation “can’t and won’t use crypto to avoid sanctions.
Chervinsky cited the scale of the Russian state’s monetary needs exceeding the capabilities of crypto markets, sanctions barring U.S. businesses and citizens from transacting with Russia regardless of the payment used, and a lack of Russian crypto infrastructure to support the demand. His arguments did not address the question of individual Russians using crypto to evade sanctions, however.
Also Read: Hillary Clinton has asked the Biden Govt to Exert Pressure on Crypto Exchanges to Prevent Russian Users
Powell stated that the situation with Russia emphasizes the need to introduce robust regulatory frameworks in the sector “to prevent these unbacked cryptocurrencies from serving as a vehicle for terrorist financing and just general criminal behavior, tax avoidance and the like.”
Earlier this week FinCEN sent out an alert for “all financial institutions to be vigilant against” Russia’s efforts to evade the U.S.’s sanctions, as it outlined a series of red flags to be able to identify any evasion activity.
The types of means listed included the use of corporate vehicles to obscure asset ownership and sources of funds, shell companies to conduct international wire transfers, use of third parties to shield identity, and newly established accounts to send or receive funds from a sanction institution.
According to cryptocurrency updates news today, the FinCEN alert stated: “It is critical that all financial institutions, including those with visibility into CVC flows, such as CVC exchangers and administrators identify and quickly report suspicious activity associated with potential sanctions evasion, and conduct appropriate risk-based customer due diligence or, where required, enhanced due diligence.”
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