US Sanctions Its First Cryptocurrency Mining Company —And It Is From Russia

The U.S. government just approved the first cryptocurrency mining company. It is also Russian.

This is just a day after IMF warned Russia that it could evade economic sanctions through mining cryptocurrencies.

The U.S. Treasury Department’s Office of Foreign Assets Control sanctioned BitRiver (a cryptocurrency mining company based out of Moscow) on April 20. This bans any business relationships with U.S citizens.

The statement stated that the sanctions were also applied to Transkapitalbank, a Russian commercial bank, and 10 subsidiaries of BitRiver as well as its Swiss-based holding firm. These entities are allegedly “owned or controlled by Russia Federation.”

The U.S. The U.S. Wants to Prevent Russia from Evading Sanctions

The Treasury Department is trying to stop Russia and its allies using Bitcoin mining to circumvent economic sanctions. The OFAC stated in a press release that Russia has significant “comparative advantage” when it comes to cryptocurrency mining.

Due to its energy resources and cold climate, Russia has a competitive advantage in crypto mining. Mining companies are dependent on fiat payments and imported computer equipment, making them vulnerable to sanctions.

This means that, despite Russia being attractive, most crypto mining businesses rely on imported technological gear to set up mining operations. These companies could be the next target for the U.S.

U.S. Brian E. Nelson According to the U.S. Treasury Under Secretary for Terrorism and Financial Intelligence, any company or person that helps Russia evade the sanctions imposed on them by the U.S. would be considered supporting “Putin’s brutal war”.

Russia could start mining cryptocurrency to bypass US influence

Yesterday, CryptoPotato reported that the Russian government could use cryptocurrency mining to get around economic sanctions. It would take advantage of Russia’s cold climate and vast energy reserves.

A Bloomberg report claims that more than 17 million Russians have cryptocurrency with assets worth almost 16.5 trillion rubles ($214billion). This represents 12% of total capitalization for cryptocurrencies. It means that most Russian citizens are familiar with cryptocurrencies and their different consensus protocols.

The U.S. is now directly targeting Russian mining companies. According to the government of the country, they are using the country’s energy to create cryptocurrencies. These cryptocurrencies can then be converted into dollars or rubles through decentralized platforms.

Russian President Vladimir Putin stated that regulation of cryptocurrency “is in the spotlight”, so mining might be seen as an opportunity for the government to avoid economic sanctions.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the””  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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