U.S. Treasury sanctions Russian bitcoin miners as war enters its third month
- For the first time ever, the U.S. Department of the Treasury is taking aim at bitcoin miners operating in Russia, as Putin’s war on Ukraine approaches its third month.
- In its latest round of sanctions, the U.S. Treasury Department says that it is taking action against companies in Russia’s virtual currency mining industry.
- According to data from Cambridge University, Russia is the world’s third-biggest destination for bitcoin mining.
According to data from Cambridge University, Russia is the world’s third-biggest destination for bitcoin mining.
“By operating vast server farms that sell virtual currency mining capacity internationally, these companies help Russia monetize its natural resources,” Under Secretary for Terrorism and Financial Intelligence Brian Nelson said in a news release released early Wednesday afternoon.
“Russia has a comparative advantage in crypto mining due to energy resources and a cold climate. However, mining companies rely on imported computer equipment and fiat payments, which makes them vulnerable to sanctions,” continued the statement.
The United States views income from the crypto mining industry as a potential threat to the efficacy of its sanctions regime, with the Treasury saying that it is committed to ensuring that no asset becomes a mechanism for the Putin regime to offset the impact of sanctions.
Interesting as the first time ever, the U.S. Department of the Treasury is taking aim at bitcoin miners operating in Russia.