Last Updated: March 26, 2024, 00:01 IST
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The U.S. on Monday imposed sanctions on a group of fintech companies and other people, largely in Russia, accused of enabling sanctions evasion.
WASHINGTON: The U.S. on Monday imposed sanctions on a group of fintech companies and other people, largely in Russia, accused of enabling sanctions evasion.
Treasury’s Office of Foreign Assets Control sanctioned 13 companies — 5 of that are owned by an already sanctioned individual — and a pair of individuals who have all both helped construct or function blockchain-based companies for, or enabled digital foreign money funds in, the Russian monetary sector, “thus enabling potential sanctions evasion,” in response to U.S. Treasury.
Included in Monday’s sanctions are a bunch of Moscow-based fintech firms and a Russia and UAE-based digital foreign money trade, amongst others.
Lawmakers and administration officers have voiced considerations that Russia could also be utilizing cryptocurrency to keep away from ache from the avalanche of sanctions imposed on banks, oligarchs and the vitality trade in response to Russia’s February 2022 invasion of Ukraine.
Experts say an elevated reliance on cryptocurrency could be an inevitable avenue for Russia to attempt to prop up its monetary transactions, however Treasury officers have rejected the declare that cryptocurrency could possibly be a serious driver of sanctions evasion.
“Russia is increasingly turning to alternative payment mechanisms to circumvent U.S. sanctions and continue to fund its war against Ukraine,” Treasury Under Secretary Brian E. Nelson.
“As the Kremlin seeks to leverage entities in the financial technology space, Treasury will continue to expose and disrupt the companies that seek to help sanctioned Russian financial institutions reconnect to the global financial system.”
State Department spokesman Matthew Miller mentioned Monday’s motion “reaffirms the G7 commitment to curtail Russia’s use of the international financial system to further its war against Ukraine. It also reflects our continued efforts to target companies servicing Russia’s core financial infrastructure.”
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