US Treasury highlights crypto as threat that could harm efficacy of sanctions


  • The US Treasury Department has issued a review of sanctions for 2021, expressing some concerns that could undermine its strength and trust.
  • Cryptocurrencies were viewed as a threat as its adoption continually increases.
  • The department stressed the need for better communication and engagement with the crypto community and financial institutions.

The United States Department of the Treasury recently published a review on sanctions for 2021 and stated that the government would need to ramp up efforts to develop its infrastructure and policies for cryptocurrencies. 

US government should implement new framework for crypto

The US Treasury Department said in a report that the increase in the adoption of digital assets was hampering the implementation of sanctions while balancing funds from humanitarian organizations. The document further suggested that effective communication is needed between itself and the crypto industry, financial institutions to improve the current policy.

The department added, “If left unchecked, these digital assets and payments systems could harm the efficacy of our sanctions.”

The Treasury said that the government should adopt a structured policy framework to coordinate with allies and partners when needed to ensure that sanctions are understood, enforceable and adaptable. According to the report, measures must be implemented to “mitigate the unintended economic, political and humanitarian impact.”

Digital assets were highlighted as a risk in the report, and the Treasury suggested that it should invest in “deepening its institutional knowledge and capabilities” in the evolving cryptocurrency services space to “support the full sanctions lifecycle of activities.”

This move of stressing the need for the department to engage with the cryptocurrency community comes after a series of ransomware attacks earlier this year, notably the Colonial Pipeline system that was hacked in May. The Treasury imposed sanctions on a crypto over-the-counter (OTC) broker, Suex, last month for its alleged role in facilitating transactions for ransomware attacks.

The Office of Foreign Assets Control (OFAC) recently published guidelines for the cryptocurrency industry on navigating US sanctions. The office suggests that citizens in the country, including members that are involved in the digital asset industry, are responsible for ensuring that they do not engage in unauthorized activity or dealings with sanctioned persons or jurisdictions.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bank of America bullish comments on metaverse push Axie Infinity and Sandbox closer to breakout

Bank of America's strategist made bullish remarks about the metaverse, triggering a spike in interest in Axie Infinity and Sandbox tokens. The rices of the two metaverse tokens continue climbing with increased interest from investors. 

More Axie Infinity News

Polkadot price ready to breakout after DOT forms double bottom

Polkadot price began turning around and moving higher on November 28. It is currently resting on support after a brief pull-back, with the potential for using this floor as a launchpad higher. A resumption of the bullish impulse will provide fresh confirmation for the new uptrend.

More Polkadot News

Bitcoin Weekly Forecast: The bull and the bear case for BTC

Bitcoin price saw a recent bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. With directional bias and choppy price action, BTC is likely to experience massive volatility as the situation resolves over time. 

More Bitcoin News

Berkshire Hathaway’s Charlie Munger wants US to ban cryptos like China

Charlie Munger considers cryptocurrencies bad for people and backs China on its cryptocurrency ban.In his previous interviews, Munger has shed light on the concept of “speculative excess” and “asymmetry of wealth.” 

More Cryptocurrencies News

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

BTC

ETH

XRP