WASHINGTON, D.C. – As the unprovoked Russian invasion of Ukraine continues, U.S. Senator Angus King (I-Maine) is cosponsoring legislation to limit the ability of Vladimir Putin and Russian oligarchs to evade economic sanctions by using digital assets such as cryptocurrencies. The Digital Asset Sanctions Compliance Enhancement Act would prohibit any Russian digital assets from being traded in U.S. jurisdictions, enact new cryptocurrency transparency requirements, and give the Biden administration additional powers to go after Russian digital assets. The bill comes amid widespread warnings that Russian actors may try to evade economic sanctions by using digital currencies. The legislation continues Senator King’s ongoing efforts to constrain Putin’s access to fund his brutal war; he recently introduced the bipartisan Stop Russian GOLD Act to target Russia’s large gold reserves, and helped push the Biden administration to strengthen similar sanctions.

“As the united sanctions of America and our allies devastate Russia’s economy, we must ensure that Putin cannot exploit any financial loopholes to escape the consequences of his crimes,” said Senator King. “If we don’t take action, digital assets and cryptocurrencies could provide Putin and his oligarchs the exact lifeline they’re looking for – and extend this attack longer. The Digital Asset Sanctions Compliance Enhancement Act would crack down on Russia’s ability to digitally launder their assets, create much needed transparency, and ensure Russia feels the weight of their heinous attacks on a sovereign neighbor.”

The Digital Asset Sanctions Compliance Enhancement Act would combat the risk of Russian actors from using digital assets to evade international sanctions by discouraging foreign crypto firms from doing business with sanctioned Russian elites, providing the Administration with authority to suspend transactions with Russia-linked crypto addresses, and increasing transparency around crypto holdings. 

Specifically, the Digital Asset Sanctions Compliance Enhancement Act would close potential avenues for evasion of sanctions against Russia by:

• Requiring the President to identify foreign digital asset actors that are facilitating evasion of sanctions against Russia, and authorizing the President to sanction such actors, prohibiting their transactions with U.S. persons and blocking their assets. 

• Providing the Treasury Secretary clear authority to prohibit digital asset trading platforms and transaction facilitators under U.S. jurisdiction from transacting with cryptocurrency addresses that are known to be, or could reasonably be known to be, in Russia.

• Directing FinCEN to require U.S. taxpayers engaged in a transaction with a value greater than $10K of cryptocurrency offshore to file FinCEN Form 114 (FBAR).

• Requiring the Treasury Department to report on its progress in implementing these provisions, including any resources needed by the Department to improve implementation and progress in coordinating with foreign partners.

• Requiring the Treasury Department to issue a public report identifying foreign digital asset trading platforms that are determined to be high risk for sanctions evasion, money laundering, or other illicit activities.

As a member of the Senate’s Intelligence Committee, Armed Services Committee, and Energy and Natural Resources Committee, Senator King has forcefully condemned Russia’s attacks on Ukrainian sovereignty and called for maximum economic pressure on Vladimir Putin and his oligarchs. Senator King recently introduced the Stop Russian GOLD Act to target Russia’s large gold reserves, and helped push the Biden administration to strengthen similar sanctions. Last month, King joined a bipartisan Congressional delegation to Poland and Germany where he met with NATO leaders, Ukrainian refugees, and U.S. servicemembers for a first-hand look at the humanitarian crisis and America’s efforts to support Ukrainians.  Senator King recently cosponsored a resolution condemning Russia’s unprovoked invasion and calling for an investigation into war crimes, supported almost $14 billion in aid for Ukraine, has advocated for new sanctions against Putin, and called for maximum intelligence sharing with Ukrainian officials.