A U.S Lawmaker has urged the Joe-Biden-led administration to develop an “effective strategy” to limit the usage of crypto in evading sanctions. In the lawmaker’s words, ” advanced technology like cryptocurrencies has many advantages like Humanitarian relief, but the administration has not been able to ensure that crypto is not negatively used to the detriment of U.S national security. “
Congressman McCaul Seeks An ‘Effective Strategy’ to Restrict The Usage Of Crypto In Dodging Sanctions
Micheal McCaul, a top member of the House Foreign Affairs Committee and a U.S. Representative, is working hard to restrict the usage of cryptocurrencies in the evasion of sanctions made by the United States. On Thursday 14th April, he advised the Joe Biden admin to develop an “effective Strategy” to restrict crypto’s use to avoid sanctions.
“Government can apply advanced technologies such as cryptocurrencies in positive ways such as generous relief. Although the admin has not been able to keep up in ensuring that this original form of currency is not negatively used, which can threaten the U.S. National Security.” the congressman pointed out, stressing that :
“Penalizing criminals is an excellent step to take for a start. Still, I advise the admin to develop an effective strategy to restrict crypto usage to circumvent U.S. sanctions by corrupt actors.”
This statement he made is coming after the conviction of Virgil Griffith to over five years in federal prison for assisting North Korea in circumventing U.S. sanctions using crypto tech. Rep Micheal also mailed a letter to U.S. President Joe Biden in March concerning the issues of “abusing new-age technologies like crypto by the Russians to dodge sanctions.” He identified “a sudden United Nations report on North Korea employing confiscated cryptos in financing its nuclear program.”
He didn’t get any reply from Biden. Micheal McCaul later forwarded an identical letter to Director of National Intelligence Avril Haines following her attestation before the House Permanent Select Committee on Intelligence concerning how her department will handle crypto-related sanctions circumventions.
Sometime ago this month, Micheal allied with the House Foreign Affairs Committee Chairman Gregory Meeks (D-NY) to propose the Russia Crypto Transparency Act. Bipartisan supported the bill and later rolled over the House Foreign Affairs Committee. This new bill will “aid the United States in observing all there is too restricting the usage of crypto in dodging U.S. sanctions.”
While some congressmen are anxious about using cryptocurrency to dodge sanctions, several experts stated that crypto is not a functional tool for evading sanctions. Last month, according to an official from the United States Treasury: “There’s no visible way we can see that crypto can be used in a concise way to circumvent sanctions.” Nevertheless, Senator Elizabeth Warren (D-MA) proposed a bill on cryptocurrency sanctions. This bill “would impose restrictions on people who develop and use cryptocurrency network regardless of whether they know or plan to aid in evading sanctions.”