Sanctioning of Russian Crypto Mining by US

Bitriver with some other subsidiaries are added to list of OFAC in connection with the ties to Russian economy. Here, U.S. government add Bitriver, the company of Russian crypto mining to their sanctions list as a part of their ongoing effort for blockading the Russian firms to simply access the international financial network for wake of the invasion of Ukraine in Russia.

The Department of Treasury for OFAC also known as Office of Foreign Asset Control. It handles entire U.S. sanctions list, Bitriver say with almost 10 subsidiaries, say the companies. It is operated in technology sector in economy of Russia.

Treasury is even taking the action against the companies in virtual currency mining of Russian industry. By operating huge server farms which sell the virtual currency in the mining capacity globally. Such companies assist Russia monetize the natural resources. However, Russia has quite comparative advantage for crypto mining because of energy resources & cold climate. Though, companies of crypto mining rely to import the computer equipment with fiat payments. This makes them to be vulnerable to easily sanctions.

Unlike few of the sanctions related to crypto, OFAC do not list the bitcoin or different crypto wallet that is address associate with sanction companies.

Moreover, U.S. has also sanction diferent Russian oligarchs with key businesses subsequent Russia invade with Ukraine. In hopes that the financial penalties that may also convince Vladimir Putin, Russian President. This is to withdraw the troops. Few of Russian banks is also block from international SWIFT with the network of bank connections.

Among the partners Bitriver’s with En+, is even tie with Russian oligarch and Oleg Deripaska. The billionaire is even sanction by the U.S. in year 2018. Though En+ is also sanction at time, where sanctions on this are lift when Deripaska reduce the holdings in company of power production.

Author: admin