Following SWIFT Card, US Also Considering Bitcoin Sanctions on Russia

[Asia Economy New York=Special Correspondent Joselgina] As the United States decided to exclude Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment network, reports have emerged that the U.S. is also considering sanctioning cryptocurrencies held by Russia, including Bitcoin.

The Wall Street Journal (WSJ) reported on the 27th (local time), citing U.S. government officials, that the Joe Biden administration is studying measures to block Russia's cryptocurrency transactions.

Due to the nature of cryptocurrencies, which are not regulated by the government, it is not easy to identify and sanction assets held by Russia. However, WSJ assessed that such sanctions are not entirely impossible. Possible measures include banning transactions initially sold in Russian rubles on global cryptocurrency exchanges or transactions requested by Russian users.

In particular, the U.S. may also place Russian cryptocurrency exchanges themselves under sanctions. Currently, it is estimated that there are about 12 million online wallets storing cryptocurrencies in Russia. The stored amount is approximately $23.9 billion (about 28.8 trillion KRW).

Previously, the U.S. and other Western countries decided to exclude Russian banks from the SWIFT payment network. SWIFT, considered a powerful sanction tool, is used by over 11,000 major banks and financial institutions worldwide, and excluding Russia effectively means expelling it from the international financial network. White House Press Secretary Jen Psaki emphasized, "Russia is now in the same situation as Iran," adding, "It has been cut off from the international community and financial system."

The U.S. is also reviewing sanctions related to Russia's key sector, energy. Press Secretary Psaki mentioned, "It is on the table."

The White House confirmed that President Joe Biden's upcoming State of the Union address scheduled for the 1st will include content related to the invasion of Ukraine.