U.S. Treasury Sanctions Bitcoin Wallets For First Time

Sanctions Set a New Precedent

Though Khorashadizadeh and Ghorbaniyan were targeted for potential involvement in criminal activities, the U.S. Treasury Department’s move sets a new precedent in the crypto-sphere.

With Iran currently reeling from wider economic sanctions from the U.S., and bitcoin usage on the rise in the Middle-Eastern country, it is possible that these actions could be the first of many. And the consequences for exchanges caught in the crossfire could be severe.

“As Iran becomes increasingly isolated and desperate for access to U.S. dollars, it is vital that virtual currency exchanges, peer-to-peer exchangers, and other providers of digital currency services harden their networks against these illicit schemes,” explained Sigal Mandelker, Treasury Under Secretary for Terrorism and Financial Intelligence.

U.S. Department of Homeland Security Takes Aim at Privacy Coins

In addition to the push to crack down on illicit bitcoin transactions, authorities are also looking at ways to reign in privacy coins such as Monero and Zcash, according to a new PreSolicitation.

“A key feature underlying these newer blockchain platforms that is frequently emphasized is the capability for anonymity and privacy protection. While these features are desirable, there is similarly a compelling interest in tracing and understanding transactions and actions on the blockchain of an illegal nature,” the PreSolicitation states.

The notice suggests that the U.S. Department of Homeland Security is considering the development of a forensics tool which will allow the agency to monitor, track and identify users of a number of privacy coins, much like Chainalysis has done with the Bitcoin blockchain.

https://www.zerohedge.com/news/2018-12-04/us-treasury-sanctions-bitcoin-wallets-first-time