The U.S. government agency reportedly introduced official statements from cryptocurrency exchanges to follow the sanctions imposed by the U.S. government against Russia.

It's day 6 of Russia's battle with Ukraine. Most countries are supporting Ukraine and trying to slow down the Russian invasion of Ukraine, and they are imposing sanctions on Russia to keep the country out of the global financial system. Currently, cryptocurrencies are playing a crucial role not only for Ukraine but also for Russia to get out of such sanctions.

On March 28, Bloomberg published a report on the U.S. government's cryptocurrency exchange order, which could play an important role in prohibiting the Russian government from bypassing the sanctions imposed on the Russian financial system.

According to the report, the Biden administration has become aware of the involvement of cryptocurrency assets and the blockchain industry, so they have decided to take action against the industry in order to maintain the same impact of sanctions as the traditional financial system.

On the final day, the Treasury Department's Office of Foreign Assets Control issued an order requiring cryptocurrency exchanges to comply with sanctions; titled Biden's 2021 Executive Order Final, the order prohibits deceptive or structured transactions or trades to circumvent any U.S. sanctions, including through the use of digital currencies or assets or the use of physical assets.

The new order will take effect on March 1, which is today.

Alma Angotti, principal of global consulting firm Guidehouse, shared his position on the matter and said that U.S. sanctions against any institution in a country are an automatic order for all businesses to follow the same sanctions to align with the regulatory system.

“The emphasis on cryptocurrency exchanges could be “marketing ……(…) …… U.S.” a way to very specifically let sanctioned parties know that they are looking for this.”

On February 27, Ukrainian Deputy Prime Minister Mykhailo Fedorov urged all cryptocurrency companies to restrict cryptocurrency accounts of all political and ordinary citizens in the Russian region.

In response to this request, Kraken CEO Jesse Powell responded and claimed that the exchange cannot restrict or freeze the accounts of any innocent users, but that any legal order may apply.

1/6 I understand the rationale for this request, but with all due respect to the people of Ukraine, @krakenfx cannot freeze the accounts of our Russian customers without a legal requirement to do so. Russians should be aware that such a request may be imminent. #NYKNYC

– Jesse Powell (@jespow) February 28, 2022

Also Read: Cryptocurrency Market Recovers to $2 Trillion Amid Russia's Battle with Ukraine