The Biden administration is leading the way in enacting economic legislation Prohibition Against Russia’s aggression in Ukraine, the G7 (Group of Seven) countries are joining forces to ensure its effectiveness.
Russia is reportedly using cryptocurrency to maintain access to foreign capital and to avoid and offset international “penalties”.
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G7 vs Russia
However, the G7 countries are committed to imposing measures to ensure that Russia is experiencing an economic response “to sanctions, curbing fraud and stopping errors”.
The G7 said in an official statement:
“Our countries have imposed extensive, restrictive measures that have severely compromised Russia’s economy and financial system.”
Specifically, this means that the G7 will ensure that Russian billionaires and their proxies are unable to evade international sanctions by using cryptocurrencies.
Russian crypto as a countermeasure
The US government is keeping an eye on Russia The latter is planning to trade crypto assets and is still participating in the global financial system, the report said.
The Russian government is also ready to launch its own Central Bank Digital Currency Which will enable it to trade with countries without having to go through the American currency
Russian companies have introduced a new technology to hide their transactions, even from third-party investigators. This will protect their activities from the blockchain recording process.
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BTC total market cap at $735.89 billion on the daily chart | Source: TradingView.com
In response, the US Department of the Treasury Office of Foreign Asset Control (OFAC) issued a directive on Friday urging financial institutions to resist Russia’s efforts to “use virtual currency to avoid US sanctions on Russia.”
Furthermore, it highlights that all U.S. citizens must comply with OFAC regulations, whether a transaction is marked on a traditional Fiat currency or a virtual currency.
According to OFAC:
“Wherever U.S. individuals are located, including companies that process virtual currency transactions, they must be vigilant against attempts to circumvent OFAC regulations and take risk-based measures to ensure they are not involved in prohibited transactions.”
Bitcoin on Rough Selling
Other countries fully support the US move because the G7 group has promised Russia to refrain from using crypto resources to avoid sanctions.
Since Russian President Vladimir Putin ordered the invasion of Ukraine, the price of bitcoin has remained on the rollercoaster ride.
Bitcoin dropped to a low of $ 35,000 early in the Russian invasion. As of Monday afternoon, Bitcoin was still below the 40K mark, at $ 38,875.82, Coingecko shows.
Meanwhile, on Friday, UAE crypto companies were flooded with requests from Russians to scrap billions of dollars in digital currency to protect their assets from the ongoing war.
Featured image from Indo-Pacific Defense Forum, chart from TradingView.com