The US Treasury Department imposed sanctions on several digital financial asset operators (DFAs) and cryptocurrency companies cooperating with Russia.
These sanctions were imposed on companies accused of helping Russia circumvent sanctions and develop new payment instruments.
They include CFA operators Atomize and Masterchain, fintech company Lighthouse, cross-border settlement operator B-Crypto, and popular crypto exchange Bitpapa. In total, four individuals and 19 companies have been sanctioned.
This move by the U.S. signals a serious concern among Western regulators about the use of cryptocurrencies to circumvent sanctions, which could lead to tighter regulation of the crypto market by other countries.
The sanctions against Russian platforms followed the legalization of CFAs for international settlements in Russia. President Vladimir Putin signed a law on the use of CFAs in international settlements.
Experts believe that the use of digital assets for foreign trade transactions can mitigate the impact of sanctions on Russia, but analytical services mark sanctioned platforms and transactions with them as sanctioned, which creates risks for users.
The creation of Russian cryptocurrency exchanges and the development of alternative cryptocurrency systems, such as anonymous stablecoins, may be an important step to circumvent the tightened regulation in the West and increase security for users.