The U.S. Treasury Department says it must “modern and adapt” to digital currencies

The U.S. Treasury Department has issued a sanctions review report and recommended that the government take more measures to develop its infrastructure and policies related to digital assets.

In the October 18 report, the U.S. Treasury Department Said The increasing use of digital assets hinders the implementation of sanctions while balancing the funds of legitimate humanitarian organizations. The department suggested that in addition to “deepening its institutional knowledge and capabilities,” better communication between it and the crypto industry, financial institutions and other institutions can help improve current policies.

Deputy Finance Minister Wally Adeyemo said: “Sanctions are a fundamentally important tool to promote our national security interests.” “The sanctions review by the Ministry of Finance shows that this powerful tool continues to yield results. , But also face new challenges. We are committed to working with partners and allies to modernize and strengthen this critical tool.”

The report added:

“If left unchecked, these digital assets and payment systems may undermine the effectiveness of our sanctions.”

According to the report, the Ministry of Finance recommends that the government adopt a structured policy framework, coordinate with allies and partners where possible, to ensure that sanctions are understood, enforceable, and adaptable, and implement them “to mitigate unexpected economic and political And humanitarian impact.” The department added that it should be modernized to include “the right expertise, technology, and employees” to meet the challenges of digital assets.

related: Rogue countries evade economic sanctions, but is cryptocurrency wrong?

The U.S. Treasury Department has been adopting sanctions as part of the government’s efforts to combat ransomware attacks that threaten the country’s infrastructure—for example, when the Russian-based DarkSide hackers Attacked the colonial pipeline system in May.Last month, the department announced that it would Sanctions imposed on the Czech Republic And the Russian company Suex OTC is suspected of allowing hackers to access cryptocurrencies sent as payments for ransomware attacks.