Russia and China are using cryptocurrencies to circumvent international sanctions, raising concerns and potential policy changes from the U.S.
Points
- Use of stablecoins by Russia to avoid sanctions
- China’s selective adoption of blockchain technology
- U.S. concerns and potential regulatory responses
Russia is turning to digital assets like stablecoins to circumvent international sanctions and facilitate cross-border payments. Since 2013, platforms like Qifa have been importing Chinese goods to Russia, with crypto payments speeding up transactions and avoiding delays typical of traditional banking.
China, despite banning cryptocurrencies, is still exploring blockchain and digital currencies. Once a major hub for the crypto industry, China has banned cryptocurrency transactions and mining, citing financial risks and environmental concerns. However, it continues to invest in blockchain technology for its potential applications, indicating a selective adoption of digital innovations while excluding broader cryptocurrency use.
U.S. Undersecretary of the Treasury Wally Adeyemo has raised concerns about the increasing use of cryptocurrencies by malicious actors to evade traditional financial regulations. He highlighted Russia’s use of the stablecoin Tether （USDT） to finance its war efforts without triggering sanctions. Adeyemo stressed the need for stricter regulations within the cryptocurrency industry to address these threats.
The Treasury Department’s proposed approach includes three key measures: implementing secondary sanctions against foreign cryptocurrency businesses that facilitate transactions for sanctioned entities, expanding regulatory authority to enforce robust KYC （Know Your Customer） and AML （Anti-Money Laundering） procedures, and addressing challenges from offshore cryptocurrency platforms. This strategy aims to combat the misuse of digital assets by terrorist groups and nation-states, including North Korea and Russia.
In summary, the U.S. plans to broaden sanctions to target Chinese banks, prompting Russia and China to explore stablecoins to minimize reliance on traditional banking. Alexey Guznov from the Bank of Russia confirmed ongoing efforts to regulate stablecoins for international use, although technical and regulatory hurdles remain.
解説
- Use of stablecoins: Russia’s use of stablecoins like Tether to evade sanctions highlights the need for international regulatory responses.
- Selective blockchain adoption: China continues to explore blockchain technology while maintaining strict bans on broader cryptocurrency use.
- Regulatory strategy: The U.S. Treasury’s proposed measures aim to strengthen regulatory oversight and combat the illicit use of cryptocurrencies.