FinCEN: Russia may use cryptocurrency to evade sanctions

The US regulator has asked financial institutions to report any suspicious actions on the Russian side

08.03.2022 - 12:45

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What’s new? The US Financial Crimes Enforcement Agency (FinCEN), which is part of the Department of the Treasury, has published an appeal regarding sanctions against Russia. The regulator has asked cryptocurrency-related financial institutions to report any activity that may be seen as a way to evade restrictions. Acting Director of FinCEN Him Das recalled that “it is important to be vigilant to support Ukraine and its people.”

FinCEN’s appeal

What measures is the West taking against Russia? US lawmakers and regulators are concerned that individuals and banks based in Russia are trying to use cryptocurrency to evade sanctions. Him Das added:

“Although we have not seen widespread evasion of our sanctions using methods such as cryptocurrency, prompt reporting of suspicious activity contributes to our national security.”

Many companies have ceased operations in Russia at the request of the United States and the European Union. The exchanges such as Kuna, WhiteBIT, and CEX.io have already been disabled all Russian IP addresses. However, Binance is not going to block users from the Russian Federation until it receives a direct request from the government.

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