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Treasury says crypto eases US sanctions, seeks more funding – Begin Begin News


The U.S. Treasury Department says the growing use of crypto resources is challenging the effectiveness of U.S. sanctions. “We are aware of the risk that, if not checked, these digital assets and payment systems could harm the effectiveness of our sanctions,” the Treasury Department explained.

The Treasury says crypto threatens the effectiveness of U.S. sanctions

The U.S. Treasury Department released its 2021 sanctions review on Monday. “Technological innovations such as digital currencies, alternative payment platforms, and new ways to hide cross-border transactions potentially reduce the effectiveness of American sanctions,” the report details.

Although sanctions are an essential and effective policy tool, they face new challenges, including new payment systems, increasing use of digital resources, and the growing risk of cybercriminals.

“We are aware of the risk that, if not checked, these digital assets and payment systems could harm the effectiveness of our sanctions,” the Treasury Department said.

“To mitigate those challenges and increase the effectiveness of the Treasury’s role in moving forward with sanctions,” the report made a number of recommendations.

One of them is “modernization of Treasury sanctions technology, workforce and infrastructure.” The Treasury Department “must have the right skills, technology and personnel to support the process of formulating and implementing a strong and effective sanctions policy,” the report added, adding:

The Treasury should invest in developmental digital resources and services to deepen its institutional knowledge and capabilities in order to support the life cycle of a complete ban on activities.

On Tuesday, Treasury Deputy Secretary Wally Edemo told lawmakers that the Biden administration’s financial intelligence and sanctions units needed significantly more funds and personnel to deal with national security threats, including problems arising from ransomware and cryptocurrency markets.

“One of the most important areas for us, obviously, is making sure we have staff who understand these issues as they move forward,” Ademo said, noting:

These crypto exchanges and cyber criminals who facilitate ransomware exist outside the United States and have an impact here.

Do you think cryptocurrency challenges the effectiveness of US sanctions? Let us know in the comments section below.

Image credit: Shutterstock, Pixabay, Wiki Commons

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