US Treasury says it must ‘modernize and adapt’ to digital currencies

The United States Department of the Treasury issued a review on the sanctions and suggested that the government do more to develop its infrastructure and policies regarding digital assets.

In an October 18 report, the Treasury Department said The increasing use of digital assets hampers the implementation of sanctions while balancing the funds of legitimate humanitarian organizations. The department suggested that better communication between him and the crypto industry, financial institutions and others, as well as "deepening his institutional knowledge and capabilities," could help improve current policy.

"Sanctions are a fundamentally important tool to advance our national security interests," said Under Secretary of the Treasury Wally Adeyemo. “The Treasury sanctions review has shown that this powerful instrument continues to deliver results, but it also faces new challenges. We are committed to working with partners and allies to modernize and strengthen this critical tool. "

The report added:

"Left unchecked, these digital assets and payment systems could harm the effectiveness of our sanctions."

According to the report, the Treasury Department suggested that the government adopt a structured policy framework, coordinate with allies and partners where possible, ensure that sanctions are understood, enforceable, and adaptable, and implement them “to mitigate the impact. unwanted economic, political and humanitarian. "The department added that it should be modernized to include" the right expertise, technology and staff "to handle the challenges of digital assets.

Related: Rogue states bypass economic sanctions, but is encryption wrong?

The US Treasury Department has been applying sanctions as part of the government's efforts to combat ransomware attacks that threaten the country's infrastructure, for example when Russian-based hackers DarkSide attacked the Colonial Pipeline system In May. Last month, the department announced that impose sanctions on the Czech Republic as well as Russian company Suex OTC for allegedly allowing hackers to access cryptocurrency sent as payment for ransomware attacks.