The US Treasury Department says it needs to “modernize and adapt” to digital currencies

The U.S. Treasury Department released a sanctions review and recommended that the government evolve its infrastructure and policies related to digital assets.

In an October 18 report, the Treasury Department said the increased use of digital assets is hindering the implementation of sanctions while offsetting funding from legitimate humanitarian organizations. The ministry suggested that better communication between him and the crypto industry, financial institutions and others, in addition to “deepening his institutional knowledge and capacities”, could help improve current policies.

“Sanctions are an important fundamental tool in the enforcement of our national security interests,” said Deputy Treasury Secretary Wally Adeyemo. “A review of financial sanctions has shown that this powerful tool continues to deliver results, but is also facing new challenges. We are committed to working with our partners and allies to modernize and strengthen this important tool. “

Report added:

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

According to the report, the Treasury Department recommends that the government adopt a structured policy framework and, where possible, work with allies and partners to ensure that sanctions are understood, enforceable and adaptable while being implemented “to address unintended economic, political and humanitarian.” To minimize measures ”. Effects. The ministry also added that it should be modernized to include “the right expertise, technology and staff” to address the challenges of digital assets.

Related: Rogue Countries Dodge Economic Sanctions, But Are Cryptocurrencies Wrong?

The U.S. Treasury Department imposed the sanctions as part of the government’s efforts to combat ransomware attacks that threaten the country’s infrastructure – such as when Russia-based hacker DarkSide attacked the Colonial Pipeline system in May and announced last month To impose sanctions in the Czech Republic as well as the Russia-based Suex OTC business.