Expansion of sanctions! U.S. OFAC announces ban on transactions with entities including the Bank of Russia, including cryptocurrency.

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) issued the "Russia Harmful Foreign Activities Sanctions Regulations" on February 28, which prohibits transactions with the Central Bank of Russia, the National Wealth Fund, and the Ministry of Finance, including cryptocurrencies, according to the regulations.

The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury issued the "Sanctions Regulations on Harmful Foreign Activities in Russia" on February 28. According to the regulations, transactions with the Central Bank of Russia, the National Wealth Fund, and the Ministry of Finance of Russia are prohibited, including cryptocurrencies.

Amid Ukraine seeking fundraising and Russia seeking refuge, the price of Bitcoin has surged for 5 consecutive days from $34,000 to $44,000. As of the deadline, the price has not been affected by the new OFAC regulations.

The new regulations from OFAC are based on the April 2021 executive order issued by the Biden administration related to Russia. This executive order is aimed at blocking assets related to the Russian government's "specific harmful foreign activities." Any transactions that circumvent U.S. sanctions, including those using digital currencies, assets, or physical assets, are prohibited under their list of prohibited activities.

The new regulations issued by OFAC are related to a state of emergency involving Russia, therefore not subject to regular administrative procedures. After announcing the draft form, the regulations will come into effect upon completion of registration.

The sanctioned entities mentioned in the regulations include the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation. The regulations state that transactions with these Russian entities are prohibited unless authorized by OFAC or in other ways, including transferring assets to these entities or conducting foreign exchange transactions on behalf of these entities.

Although OFAC's new rules do not specifically list cryptocurrencies, they reaffirm the enforcement of the Biden administration's executive order, which prohibits digital transactions that evade sanctions.

This sanction by OFAC is an expansion following the U.S. and the EU's removal of some Russian banks from SWIFT.

This article is authorized to be republished from Horizon News Network