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American Legislation imposed sanctions against BitRiver

Bitriver told the RIA Novosti media outlet that the department's efforts are affecting its credibility and worldwide business because the allegations are false.

12-May-2022 By: Shikha Jha
American Legislation

American Legislation imposed sanctions against "BitRiver".

Bitriver, one of the main operators of crypto mining data centres in Russia, may file a lawsuit against the US over the decision to penalize it. The firm argues that it does not facilitate the Russian government in evading international sanctions.

"Bitriver dismisses US accusations as unfounded and believes there is no legal basis for sanctions."

The US Treasury Department has classified the Swiss-registered organization and a number of affiliated organizations in a fresh round of regulations targeting Russian businesses and persons, and Bitriver is considering pursuing a lawsuit against them. With the new sanctions enforced over the situation in Ukraine, Russia's currency mining capacity was explicitly targeted.

Bitriver told the RIA Novosti media outlet that the department's efforts are affecting its credibility and worldwide business because the allegations are false. The company is likewise sure that the prohibitions are illegal, and it plans to demand that it should be removed from the blacklist by American authorities. It also stressed:

Bitriver is a commercial enterprise, not a government entity, that does not assist the Russian Federation in evading sanctions.

The Russian organization also accuses the Treasury of engaging in unfair practices and representing the interests of the US mining industry, in breach of WTO rules. Bitriver CEO Igor Runets comments on the department's move as "an endeavour to alter the global balance of power in favour of US corporations and eliminate the largest Russian participant from the market."

Despite the limitations, Bitriver states that all of its production plants and offices in the Russian Federation remain operational. The company continues to deliver services to its foreign clients, who have reaffirmed their intention to keep working with the Russian bitcoin mining company, according to the company.

Several sanctions on Russia have been enforced by Western allies, restricting Russia's access to foreign banking and foreign reserves. There are fears that the Russian government and citizens may utilize cryptocurrency to bypass the limitations.

Officials in Moscow have emphasized Russia's economic advantages in mining, citing low energy costs and a pleasant climate. In April, the parliament received a draught law designed to govern the sector.


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