Sen. Elizabeth Warren Introduces Bill Designed To Block Crypto To Uphold Sanctions
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Elizabeth Warren Crypto Bill
Yesterday, during the Senate Banking Committee hearing on digital assets and crime, the US senator who has been a proponent of preventing sanction evasion using cryptocurrency, introduced a bill that she believes will effectively achieve her aims with the support of 10 other co-sponsors.
Bill and Provisions
Sen. Elizabeth Warren has been a strong proponent of preventing Russia from evading sanctions using cryptocurrencies. She took her desire to the next level by introducing a bill, The Digital Assets Sanctions Compliance Enhancement Act.
The bill which was introduced during a senate hearing on the role of digital assets in illicit finance would empower President Biden to slap secondary sanctions on those transacting business with sanctioned individuals, companies, or government. This bill was targeted at Russian entities sanctioned by the US government.
The senator’s major concern was that crypto was a payment option for those who attack their systems
According to Sen. Warren;
“Crypto provides a new payment option for criminals and cheats, and it’s how those who attack our systems with ransomware collect their money with the least risk that they will be caught.”
She also added that;
“In fact, according to one of our witnesses who’s here with us today about three-quarters of the money collected in ransomware attacks last year went to Russia-linked actors.”
Furthermore, she believes that the crisis in Ukraine has underscored the need for more transparency in the blockchain space.
According to her, this is the reason why she is introducing the bill which was co-sponsored by 10 other senators. Part of the co-sponsors was Sen. Mark Warner. The democratic senator representing Virginia was part of the bipartisan group that worked to include cryptocurrency tax provisions in the infrastructure bill last September.
Reactions For The Bill
Witnesses from the crypto industry during the hearing were of a different opinion from the senator. They did not see the likelihood of Russians evading sanctions using cryptocurrencies.
In a statement during the hearing, Jonathan Levin Co-Founder and Chief Strategy Officer of crypto forensics firm Chainalysis said;
“Our current assessment is that Russian SDNs are more likely to channel a greater portion of funds through traditional money laundering means, e.g., the “Russian laundromat” scheme, or through the use of alternative currencies and payment networks than through digital assets.”
Furthermore, he added that digital asset markets are a less useful tool for the sanctions evader relative to traditional financial systems for certain reasons. According to him, a high likelihood of detection, seizure, and very effective countermeasures are the reasons why digital assets markets are less useful.
Also speaking during the hearing, Levin, Michael Mosier, former acting director and current deputy director and digital innovation officer of the Financial Crimes Enforcement Network (FinCEN) agreed that it would be difficult for Russia to effectively evade sanctions using cryptocurrency.
He added that the levels of requisite liquidity to run serious amounts of Russian government capital via digital assets is a pipe dream.
“I’m the person who is behind all the numbers, I know how this happens, and it’s impossible, physically impossible, to transfer large amounts of money from fiat into crypto.”
Michael Chobanian, founder of KUNA Exchange and president of the Blockchain Association of Ukraine also said.
Similar News – Russia and Crypto
Russia’s central bank has issued a crypto license to local financial institution Sberbank. The move comes on the heels of recent agitation from Russia’s Finance Ministry, calling for the legalization of digital assets in the country.
Also, the news could signal a change in the view of central bank officials. The governor of Russia’s apex bank previously called for an outright ban of cryptocurrencies.
Elizabeth Warren Crypto Bill News
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