Wally Adeyemo, the US Treasury’s Undersecretary, announced that Russia is turning towards unconventional payment solutions, including the digital currency Tether (USDT), in order to bypass sanctions and continue funding its military activities.
In a recent hearing named “Combating Illegal Financing, Terrorism, and Sanctions Circumvention,” the committee held its second debate on this issue over the past half-year.
Russia Employs Tether to Evade Sanctions
During his testimony, Ademayo revealed how terrorist organizations and unscrupulous nations use cryptocurrencies to conceal their financial transactions.
He pointed out instances involving al-Qaeda’s Bitcoin usage and financial dealings between the Islamic Revolutionary Guard Corps-Quds Force and Hamas. Additionally, there were worries about Russia’s growing dependence on stablecoins such as Tether, which could undermine the impact of sanctions.
Adeyemo emphasized that the Treasury must intensify its efforts to thwart malicious entities, as it has already made progress in suppressing illicit finance. He cautioned that “malicious entities” will persistently utilize cryptocurrencies and digital assets for nefarious activities since they cannot be completely halted and lack the essential resources.
Adeyemo advocated for expanding the Treasury’s toolkit with penalties aimed at digital asset providers. He also pleaded with Congress to pass bills extending the agency’s authority over pivotal figures and essential functions in the digital currency sector. Furthermore, he highlighted the significance of regulations tackling regulatory complexities posed by international crypto companies for comprehensive supervision.
Debates Continue on Crypto’s Use Among Criminal Networks
At the hearing, Senator Elizabeth Warren from Massachusetts highlighted that terrorist groups such as Hamas aren’t the only ones relying on cryptocurrency for financing. She further mentioned that North Korean ransomware gangs, drug traffickers, and purveyors of child sexual abuse materials also employ crypto to transfer funds.
Instead, Republican committee members countered that Democrats, particularly under the Biden administration, are excessively zeroing in on cryptocurrencies when debating ways to curb illegal financial transactions. Senator Tim Scott from South Carolina voiced concern over this narrow focus, believing it was being used as a convenient target for larger issues concerning illicit funding.
In 2022, lawmakers introduced bipartisan proposals to tackle sanctions evasion using digital assets and cryptocurrencies, as there were worries that Russian actors might exploit this area. Last summer, Senators Warren and Marshall from Kansas reintroduced the Digital Asset Anti-Money Laundering Act of 2023. The goal was to make “crypto players,” such as wallet providers, miners, and validators, adhere to regulatory standards.
In July, Senator Jack Reed of Rhode Island, Mark Warner of Virginia, Mike Rounds of South Dakota, and Mitt Romney of Utah presented a new bipartisan proposal called the Crypto Asset National Security Enhancement Act of 2023. Unfortunately, neither bill has advanced past the initial committee review stage as of now.
Read More
- CKB PREDICTION. CKB cryptocurrency
- EUR INR PREDICTION
- PENDLE PREDICTION. PENDLE cryptocurrency
- PBX PREDICTION. PBX cryptocurrency
- W PREDICTION. W cryptocurrency
- TANK PREDICTION. TANK cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
- USD DKK PREDICTION
- ICP PREDICTION. ICP cryptocurrency
- GEAR PREDICTION. GEAR cryptocurrency
2024-04-13 23:54