US Treasury Sanctions Russian Bitcoin Miners

<div><img width="1200" height="800" src="https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/04/shutterstock_2105410955.jpg" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="US Treasury Freezes Bond Payments For Russia" loading="lazy" srcset="https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/04/shutterstock_2105410955.jpg 1200w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/04/shutterstock_2105410955-300×200.jpg 300w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/04/shutterstock_2105410955-1024×683.jpg 1024w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/04/shutterstock_2105410955-768×512.jpg 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></div><h1>US Treasury Sanctions Russian Bitcoin Miners</h1>
<p>For the first time ever, the US Treasury Department targets bitcoin miners operating in Russia as <a href="https://www.financebrokerage.com/latest-updates-ukraine-war/">Russia’s war with Ukraine approaches its third month.</a></p>
<p>In the latest round of sanctions, the US Treasury Department said it was cracking down on companies in the Russian virtual currency mining industry.</p>
<p>According to data from the University of Cambridge,<a href="https://www.coindesk.com/policy/2022/04/20/us-sanctions-russian-crypto-mining-host-bitriver/"> Russia is the third-largest Bitcoin mining destination</a> globally.</p>
<p>The companies are helping Russia monetize its natural resources through large server farms that sell virtual currency mining power internationally.</p>
<p>Russia has a comparative advantage in crypto mining due to its energy resources and cold climate. However, mining companies rely on imported computer equipment and fiat payments, making them vulnerable to sanctions.</p>
<p>The US sees crypto-mining revenue as a potential threat to the effectiveness of its sanctions regime. Thus, the US Treasury Department says it is mandatory to ensure that no assets become a mechanism for the Putin regime to absorb the effects of the offsetting sanctions.</p>
<p>Companies hit by the US Treasury sanctions include BitRiver. BitRiver has operated since 2017 and, as its name suggests, uses hydroelectric power for its mines.</p>
<p>According to its website, the mining company has more than 200 full-time employees across three offices in Russia.</p>
<p>In its latest series of sanctions against companies and individuals, the Office of Foreign Assets Control singled out 10 Russian-based BitRiver subsidiaries to help soften the blow of economic sanctions.</p>
<p>The worry is that, similar to how Iran has reportedly used <a href="https://www.investopedia.com/tech/how-does-bitcoin-mining-work/">bitcoin mining</a> to circumvent sanctions, Russia could use its vast energy resources for cryptocurrency mining operations to circumvent economic blockades in the West.</p>
<h2><img class="alignnone wp-image-93064 size-full" src="https://6ztkp25f.tinifycdn.com/wp-content/uploads/2021/02/shutterstock_574713295-1.jpg" alt="india bank" width="1200" height="861" srcset="https://6ztkp25f.tinifycdn.com/wp-content/uploads/2021/02/shutterstock_574713295-1.jpg 1200w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2021/02/shutterstock_574713295-1-300×215.jpg 300w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2021/02/shutterstock_574713295-1-1024×735.jpg 1024w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2021/02/shutterstock_574713295-1-768×551.jpg 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></h2>
<h2>German Banking Giant Commerzbank Is Applying For A Crypto License</h2>
<p>One of Germany’s largest banking institutions has confirmed that it applied for a local cryptocurrency license earlier this year. Surprisingly, this was the first time a central bank in the country has turned to cryptocurrencies.</p>
<p>A Commerzbank spokesperson confirmed to Börsen-Zeitung on April 14 that it applied for a cryptocurrency custody license in the first quarter of 2022. If approved, it would be eligible to provide exchange services and custody and protection of crypto assets.</p>
<p>Commerzbank serves more than 18 million customers and more than 70,000 institutional clients. The crypto product will reportedly target its institutional client base.</p>
<p>As of January 1, 2020, any company wishing to offer crypto services in Germany must first obtain approval from the Federal Financial Supervisory Authority, also known as BaFin.</p>
<p>Only four companies have obtained licenses. However, BaFin said more than 25 applications are pending from companies looking to engage in crypto custody.</p>
<p><a href="https://www.financebrokerage.com/coinbase-increases-transparency-of-potential-2022-listing/">Coinbase</a> Germany was the first company to receive regulatory approval in June 2021, with Berlin-based fintech firm Upvest last being licensed in March.</p>
<p>Commerzbank was involved in blockchain projects as early as 2018 and conducted some of the first transactions on distributed ledger technology (DLT) mortgage lending platforms with other significant banks the following year.</p>
<p>In August 2021, the company recently partnered to develop a blockchain-based digital marketplace for existing asset classes such as art and real estate.</p>
<p>Germany rolled out a series of reforms, regulations, and further adoption of blockchain technology and cryptocurrencies in 2021.</p>
<p>German investors are also very fond of crypto adoption. In March, a Kucoin report found that 44 percent of Germans have an incentive to invest in cryptocurrencies, and 37 percent of German crypto investors have been trading cryptocurrencies for over a year.</p>
<h2><img class="alignnone wp-image-112541 size-full" src="https://6ztkp25f.tinifycdn.com/wp-content/uploads/2021/06/shutterstock_1986026306.jpg" alt="Why Did Binance Decide To List KLAY On Its Platform? " width="1000" height="667" srcset="https://6ztkp25f.tinifycdn.com/wp-content/uploads/2021/06/shutterstock_1986026306.jpg 1000w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2021/06/shutterstock_1986026306-300×200.jpg 300w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2021/06/shutterstock_1986026306-768×512.jpg 768w" sizes="(max-width: 1000px) 100vw, 1000px" /></h2>
<h2>Puerto Rico Grants Money Transfer License To  Binance.US</h2>
<p><a href="https://www.financebrokerage.com/bitfinex-vs-binance-brief-comparison/">Crypto exchange Binance.US</a> recently added another jurisdiction that grants them a money transfer license: Puerto Rico. Many states in the United States have given this license to Binance. The US. Some of these states are Wyoming, Connecticut, and West Virginia.</p>
<p>The license was granted to Binance.US by the Puerto Rico Office of the Commissioner of Financial Institutions (OCIF). Binance.US CEO Brian Shroder said the license brings the company one step closer to having licenses in 50 US states and territories.</p>
<p>States banned Binance’s previous operations due to regulatory concerns. This new license from Binance.US brings CZ one step closer to its dream of being licensed everywhere.</p>
<p>Binance also plans to operate in other parts of the world. For instance, the company has received a positive reception in the Middle East. Abu Dhabi has become the third jurisdiction in the Middle East, allowing Binance to operate as a regulated crypto exchange. The previous territories were Bahrain and Dubai.</p>
<p>The Abu Dhabi Global Market approval gives Binance the freedom to operate as a broker-dealer for digital assets, including crypto.</p>
<p>Binance plans to use its recent funding to fund and improve the existing system and launch various exciting new products.</p>
<p>The post <a rel="nofollow" href="https://www.financebrokerage.com/us-treasury-sanctions-russian-bitcoin-miners/">US Treasury Sanctions Russian Bitcoin Miners</a> appeared first on <a rel="nofollow" href="https://www.financebrokerage.com">FinanceBrokerage</a>.</p>