The US Financial Crimes Enforcement Network (FinCEN) calls for tight control of sanction evasion by using cryptocurrency

The cryptocurrency exchanges in the USA and worldwide joined actions by their governments in the sanction regime on Russian and Belorussian financial institutions and individuals. Earlier this month, the US Department of Treasury issued guidelines to digital asset operators, urging them to block funds related to people on the sanction list.

The US FinCEN raised the concern that Russian and Belorussian financial institutions can still evade the sanction regime by using virtual currency and alternative payments systems. Therefore, the FinCEN issued a FinCEN Alert advising all financial institutions to be vigilant against potential efforts to evade the expansive sanctions and other U.S.-imposed restrictions.

In its statement the FinCEN noted that: ‘…large scale sanctions evasion using convertible virtual currency (CVC) [stablecoins and cryptocurrencies] by a government such as the Russian Federation is not necessarily practicable, CVC exchangers and administrators and other financial institutions may observe attempted or completed transactions tied to CVC wallets or other CVC activity associated with sanctioned Russian, Belarusian, and other affiliated persons… All financial institutions—including those with visibility into cryptocurrency or CVC flows, such as CVC exchangers and administrators—should identify and report suspicious activity.’

The Financial Crimes Enforcement Network also warned financial institutions of the dangers posed by Russian-related ransomware campaigns. 
The US is pushing forward a full regulatory framework on cryptocurrencies and digital assets following an Executive Order signed by the US President.