CRS Details Cryptocurrency Practices Used by Sanctions Evaders

The Congressional Research Service ("CRS") reviewed cryptocurrency practices for possible Russia sanctions evasion.

In the report, CRS detailed the way that "sanctions evaders may attempt to obscure their blockchain transactions and evade measures imposed by exchanges" including the following methods: "chain hopping"; utilization of "mixers and tumbling services"; use of "unhosted wallets"; cryptocurrencies that use techniques to enhance anonymity; and use of "peer to peer" exchanges. CRS concluded that the use of cryptocurrency to evade sanctions is often only feasible in small amounts, given capacity and liquidity restraints. CRS also noted that Congress could consider additional oversight as being necessary to limit sanctions evasion through the use of cryptocurrencies.