The Blockchain Association, a lobby group funded by Kraken, the Digital Currency Group and other influential companies in the cryptocurrency industry, is currently engaged in a campaign to end both the Russian law on digital asset sanctions compliance and the Digital Asset Sanctions Compliance Improvement Act, as reported by CNBC.
The laws would prevent sanctioned Russians, many of whom are beneficiaries of Putin’s regime, from transferring funds through digital currencies such as BTC and ETH. The Blockchain Association says it’s a cover to target “honest American crypto companies” amid the Biden government’s quest to regulate the industry.
What would the new rules mean and why does the Blockchain Association oppose them?
Earlier this year, the United States sanctioned a wide range of Russian businesses, including financial firms, up to and including the country’s central bank. The proposed bills would target Russians who attempt to use digital currencies to evade these sanctions. If approved, the new rules would give the government the power to ban US exchanges from processing Russian payments and give authorities the power to sanction any foreign exchanges that continue to do so.
According to the Blockchain Association and its partner firm Forbes Tate Partners, Russians aren’t using digital currencies to evade sanctions, and the bills are part of a vendetta by Senator Elizabeth Warren against “the technology she doesn’t.” not include”.
These bills do not target Russian oligarchs, who do not (and cannot) use crypto to evade sanctions. They target honest US crypto companies for no apparent reason except @SenWarrenis on a crusade against a technology she doesn’t understand.
Do better, @cnbc. https://t.co/WQ9kQdVtZL
—Jake Chervinsky (@jchervinsky) April 29, 2022
Opinion: ‘Crypto’ must accept that there is no way to avoid oversight and regulation
Time and time again, we see the same names vehemently opposing any rules and regulations that would bring more transparency and oversight to the digital currency industry. Ironically, these same rules and regulations would give the industry the legitimacy it desires.
“Russian oligarchs can continue to use crypto to move their money. So we’re just going to give the Treasury permission to treat these crypto platforms much like banks are treated. In other words, you have to know your client and you can’t deal with people who violate the sanctions,” said Senator Elizabeth Warren.
Whether Russian oligarchs are actually using cryptocurrencies to evade sanctions, the fact remains that this story and countless others like it prove that somehow the US United and other powerful governments are determined to tame the cryptocurrency industry and bring an end to its “Wild West” era.
Instead of embracing this inevitable change, we have seen the industry rally dozens of times against various proposed laws and regulations. Ironically, the imposition of these rules is often a consequence of the industry’s own conflicting goals and narratives. For example, it is unclear how a BTC-backed ETF can be approved without proper fraud checks or how “crypto” can be considered a legitimate alternative financial system without adhering to the same know-your-customer rules and laws and anti-money laundering than any other financial institution.
As usual, the cryptocurrency industry wants to have its cake and eat it too. It wants your money to drive up token prices and it wants to be taken seriously as an alternative financial system, but it doesn’t want to abide by the rules and regulations that keep everyone safe and prevent criminals from laundering their money. . ill-gotten gains. Until it abandons this stance and adopts reasonable legal regulation and oversight, the cryptocurrency industry will remain an ideological sideshow operating at a fraction of its potential.
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Ethereum, FTX and Attached—who co-opted the digital asset revolution and turned the industry into a minefield for naïve (and even experienced) market players.
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