The United States is exploring ways it can enforce cryptocurrency sanctions to prevent Russia from evading the control measures on its use of the traditional financial transaction systems such as SWIFT.
As the Biden administration ramp up sanctions on Russia to thwart its access to hard currency and hamstring its economy over President Putin's military aggression against Ukraine, there are concerns that Russia could resort to cryptocurrencies to trade with foreign entities without detection.
Iran and North Korea are known to have used digital currencies to mitigate the effects of Western sanctions as confirmed by U.S. and UN officials.
Russia has established itself as a hub for illicit crypto activity, including ransomware attacks, scams and cryptocurrency-based money laundering.
“They [US government] are very well aware [of the Russian government's possible use of cryptos], and have many levers at their disposal. They are exploring more options and may put in place a regulatory framework. Unlike media reports suggest, we already have the ability to monitor and enforce restrictions on addresses or seize holdings as none of the entities [cryptocurrency exchanges or wallets] would refuse to comply,” says a senior intelligence source who did not want to be identified.
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