The Treasury of the United States has the intention to keep the sanctions toolbox thereof in an ever-active state. It seemingly means that the treasury is moving to operate along with the crypto industry. On 18th October this year, a review was published on behalf of the Treasury, which discussed the sanctions to be implemented during 2021. Along with pointing out cryptocurrency to be a threat, the review also emphasized the requirement for the sector to get involved in the community of the cryptocurrency.
The sanctions program of the United States, which is being organized by the Office of Foreign Asset Control under the Treasury, has grown to a great extent after 9/11 up till now. According to the documentation of the Treasury, the respective instrument depends on the strong trust over, the daunting strength of the currency, and financial system of the United States. At many points, some concerns have been expressed by the review stating that badly designed or excessive sanctions programs, in the end, destabilize the trust and strength.
The industry of cryptocurrency has for much time experienced the dispute that escaping the sanctions counts to be among the fundamental use cases of the field. Certainly, this threat has been highlighted by the respective review. The review explained that the technological innovations, including alternative platforms for payments, digital currencies, as well as the latest methods to hide cross-border transactions, are all potentially helpful in minimizing the effectiveness of the sanctions implemented in America. Such technologies provide bad actors with the possibility to transfer and keep funds without being subjected to the financial system, which is dollar-based and traditional in this type.
Additionally, they also allow the adversaries of the country pursuing to construct the latest payments and financial systems for eliminating the global role of the dollar. The authorities are aware of the threat that, in the case of remaining unchecked, such payments and digital asset systems could pose serious harm to the sanctions. Notwithstanding the viewing of crypto to be a threat, the existing engagement capabilities and outreach have also been referred to by the Treasury to be a counterforce instead of being criminalization specifically in the case of virtual assets space. Only three days before, guidelines have been published by OFAC regarding the industry of crypto industry which is seemingly an aspect of some outreach campaign signifying that the Treasury Department will move to have agreements with more players in the space.
