The U.S. Democrats have introduced a law to enforce digital assets to reduce the use of Russian crypto

U.S. Democrats have filed a bill to reduce the use of Russian cryptography in the midst of the Ukraine crisis

Democratic senators in the United States on Thursday introduced a bill that would allow the president to penalize foreign cryptocurrency companies that do business with Russian entities and prevent a transaction with U.S. customers.

The Digital Assets Sanctions Compliance Act is chaired by Senator Elizabeth Warren and backed by 10 other Democrats, including Senators Mark Warner and Jon Tester.

Although the bill will not become law soon, the pressure on cryptocurrency exchanges could increase, amid concerns from lawmakers like Warren, who are using digital assets to avoid the many Western sanctions imposed on Russia. his invasion of Ukraine.

Russian President Vladimir Putin “and his friends can move, store and hide their wealth using cryptocurrencies, allowing the US and its members to avoid the historic economic sanctions imposed by the US and its members around the world against Russia,” Ms. Warren said. in a statement.

Administration officials have said they do not believe Russia can use cryptocurrencies to circumvent sanctions altogether, citing a lack of liquidity in crypto markets to facilitate high-volume transactions. However, the Treasury Department has stressed that digital asset companies must comply with the sanctions.

Warren’s bill could also block the U.S. Secretary of the Treasury’s digital asset platforms operating in the United States from transacting with any Russian crypto user, a step that major crypto exchanges like Coinbase and Kraken would not take without legal requirements.

The bill would also require the Treasury to publicly identify foreign crypto-trading platforms that identify high-risk foreign currency avoidance and money laundering platforms, and should report all offshore crypto transactions in excess of $ 10,000 to U.S. taxpayers.

(This story was not edited by NDTV staff and was automatically created from a union feed.)

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