Summary
TLDR: The US Treasury’s OFAC has expanded sanctions on Russian financial and technology sectors to prevent evasion of US sanctions. Entities and individuals involved in virtual assets have been targeted. Russia is exploring cryptocurrency regulations amidst growing sanctions pressure. A prominent Russian crypto exchange, CommEx, is closing down, signaling uncertain times for the nation’s crypto market.
Key Points
1. The US Treasury’s Office of Foreign Assets Control (OFAC) has broadened its sanctions, targeting individuals and entities within Russia’s financial and technology sectors. This action impacts thirteen entities and two individuals involved with virtual assets that could bypass US sanctions.
2. These steps build on OFAC’s efforts from February 23, 2024, aiming to cut off Russia’s access to vital financial infrastructure and hinder its military actions against Ukraine. Under Secretary of the Treasury for Terrorism and Financial Intelligence, Brian E. Nelson, highlighted Russia’s shift towards alternative payment methods to avoid US sanctions.
3. As a consequence of the sanctions, all US assets and property interests of the designated individuals and entities have been frozen, with reporting to OFAC mandated. Entities that the sanctioned parties own at least 50% of are also subject to these restrictions, with transactions by US persons involving their property generally forbidden unless exempted.