US House backs bill to block sanctions evasion via cryptocurrency

The U.S. House of Representatives backed the Russia Cryptocurrency Transparency Act, designed to prevent Russia from evading sanctions via cryptocurrency.

The document notes the rising risks of using digital assets to evade sanctions imposed on Russia and Belarus by the United States and other countries.

According to the bill, the Treasury Department and the U.S. State Department would be required to report to Congress on:

• any attempts by Russia or sanctioned individuals to circumvent sanctions using digital assets;
• attempts by sanctioned individuals to use DeFi services, exchanges, brokers or wallets to conduct transactions;
• an assessment of the effectiveness of using digital currencies to comply with sanctions and the potential impact of the spread of such assets on the United States’ national security interests.
• to counter the evasion of sanctions by the United States government.

The U.S. authorities should also explore ways to support economic development and provide humanitarian assistance to Ukraine, including through blockchain technology and cryptocurrencies.

The document contemplates appointing a specialist on digital currencies in the sanctions context.

Furthermore, the State Department must report to Congress on выплатах вознаграждений в криптовалютах.

The next step is for the Senate to pass the bill.

As previously reported, US lawmakers introduced the draft act establishing oversight of cryptocurrency use on March 31.

In July, American diplomats urged Japan to step up pressure on cryptocurrency exchanges and miners in the country to force them cut ties with Russia.

Read ForkLog’s bitcoin news in our Telegram — cryptocurrency news, prices and analysis.