US Restrict Russian Bitcoin Miner

BitRiver, situated in Moscow, has been added to the Treasury Department’s list of Specially Designated Nationals.

The Treasury Department’s Office of Foreign Asset Control added Moscow-based BitRiver to its Specially Designated Nationals list today, sanctioning the Russian Bitcoin miner.

BitRiver AG, BitRiver’s Switzerland-based holding firm, added ten Russian subsidiaries to the list as well.

It’s the first time a bitcoin mining company has been sanctioned by the US government. In the aftermath of Russia’s invasion of Ukraine, the sanctions are intended at hurting President Vladimir Putin and his allies.

“Treasury is also taking action against companies in Russia’s virtual currency mining industry,” said a government statement issued Wednesday. “By operating vast server farms that sell virtual currency mining capacity internationally, these companies help Russia monetize its natural resources.

“Russia has a comparative advantage in crypto mining due to energy resources and a cold climate. However, mining companies rely on imported computer equipment and fiat payments, which makes them vulnerable to sanctions.”

The announcement comes only one day after the International Monetary Fund issued a report warning that Russia may attempt to circumvent sanctions by using cryptocurrency.

“The United States,” according to today’s Treasury statement, “is committed to ensuring that no asset, no matter how complex, becomes a mechanism for the Putin regime to offset the impact of sanctions.”

For the latest International News Follow BOL News on Google News. Read more on Latest International News on oldsite.bolnews.com