The Biden administration is asking crypto exchanges to help ensure that Russian individuals and organizations aren\u2019t using virtual currencies to avoid sanctions leveled on them by Washington, according to people with direct knowledge of the matter.<\/p>\n
The White House\u2019s National Security Council and the Treasury Department have sought help from operators of some of the world\u2019s largest trading platforms to thwart any attempts to sidestep the stiff restrictions levied by the U.S. and its allies after Russia invaded Ukraine last week, said the people.<\/p>\n
The effort comes as the Biden administration grapples with how to police the asset class amid concerns that tokens can be used to avoid the heavily-regulated traditional financial system.<\/p>\n
Spokespeople for the Treasury Department and White House declined to comment on discussions with crypto exchanges.<\/p>\n
A White House official said that cryptocurrencies aren\u2019t a substitute for the heavily used U.S. dollar in Russia, but that American authorities are aggressively continuing to fight any misuse of digital assets to avoid sanctions.<\/p>\n
The efforts to cut off crypto as a sanctions workaround follow the sweeping penalties imposed on Russia by the U.S. and its allies, including a move to bar some banks from the SWIFT messaging system that connects financial institutions worldwide. The moves also underscore the significant role that digital assets are playing in a conflict testing global security.<\/p>\n
Kyiv has already used Twitter to draw in millions of dollars worth of crypto donations to bolster defenses against Moscow\u2019s army. At the same time, Ukrainian Vice Prime Minister Mykhailo Fedorov has used Twitter posts to\u00a0request<\/a><\/strong>\u00a0tips on crypto wallets linked to politicians with Kremlin ties and\u00a0urged<\/a><\/strong>\u00a0major digital asset exchanges to block addresses of all Russian users.<\/p>\n 1\/6 I understand the rationale for this request but, despite my deep respect for the Ukrainian people, @krakenfx<\/a> cannot freeze the accounts of our Russian clients without a legal requirement to do so.<\/p>\n Russians should be aware that such a requirement could be imminent. #NYKNYC<\/a> https:\/\/t.co\/bMRrJzgF8N<\/a><\/p>\n \u2014 Jesse Powell (@jespow) February 28, 2022<\/a><\/p><\/blockquote>\n\n