US Department of State Tasked to Study Impact of Bitcoin on Russian Sanctions

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US congressmen introduced on March 31 a bill aimed at establishing oversight of the use of cryptocurrencies by the Department of State. According to the bill, the objective of this measure is to prevent Russia from evading sanctions imposed on the country as a result of its military operations in Ukraine.

The document was drafted by Democrat Gregory Meeks, chairman of the US House Foreign Affairs Committee, and leading Republican congressman Michael McCall.

As part of the bill, they presented several requirements to the Department of State, including to notify Congress of the payment of rewards in cryptocurrencies in order to avoid their receipt by attackers, to
appoint a director of digital currency security in the Department of State’s Office of Economic Sanctions Policy and Enforcement, to study together with the US Treasury and USAID the possibility of using the blockchain for the humanitarian needs of Ukraine and to report on the impact of digital currencies on the effectiveness of compliance with US sanctions against Russian entities.

The bill has recently been submitted to the US Senate and House of Representatives.