Biden Asks Crypto Exchanges To Help Prevent Russia From Evading Sanctions

Key facts:
  • The White House and the Treasury were to speak with the world’s largest stock exchanges.

  • Ukrainian leaders also called on stock exchanges to freeze Russian and Belarusian accounts.

Bitcoin and cryptocurrency are still in the midst of war between Russia and Ukraine. After the economic sanctions imposed on some Russian banks and personalities, the debate is now turning to the possibility that cryptocurrency exchanges will directly cooperate with the effectiveness of the measures.

The Bloomberg report notes that the US government, through the White House National Security Council and the Treasury Department, has met with representatives of some of the world’s largest stock exchanges. I am looking for support.

According to information attributed to sources “familiar with the matter,” the Joe Biden administration will ask exchanges to help prevent bitcoin and other cryptocurrencies from serving as a safety valve for sanctioned Russian individuals and organizations.

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Although the results of the meetings were not disclosed, the outlet said that the sources are convinced that cryptocurrencies are not a substitute for the US dollar in Russia. Still the White House Determined to thwart any attempt to use cryptocurrencies to evade sanctions.

This weekend saw a much-talked-about disconnect among Russian banks from a large part of the international payment system. The United States, the United Kingdom, and the European Union have excluded most Russian banks from the SWIFT system. (Association for Global Interbank Financial Telecommunication). This means that Russia It will have to look for alternatives to maintain its economy.

Ukraine had already asked exchanges to ban Russian accounts

Yesterday morning, Ukrainian Deputy Prime Minister Mikhailo Fedorov had already asked cryptocurrency exchanges to block the addresses of Russian and Belarusian users. “It is necessary to freeze not only addresses associated with Russian and Belarusian politicians, but also to sabotage ordinary users,” the official said on Twitter.

However, some of the exchange’s spokespersons responded negatively to the request. Jesse Powell, CEO of Kraken, noted that It couldn’t be frozen The accounts of their Russian clients are without a legal order. In a tweet, Paul told Fedorov that the request could come from his government, citing recent events in Canada as an example.

For its part, Binance told Fortune that it does not intend to unilaterally freeze the accounts. “We will not unilaterally freeze the accounts of millions of innocent users,” the exchange with most users globally commented. However, cryptocurrency exchange Looks like he’s facing pressure from the organisers.

 

 

 

 

 

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