Crypto exchanges operating in the UK will be required to report on sanctions breaches in the wake of Russia’s war in Ukraine
The UK Treasury’s Office of Financial Sanctions Implementation (OFSI) has updated its reporting guidance to include crypto exchanges. The regulator fears that cryptocurrencies may be used to evade sanctions imposed on Russian entities and individuals over the raging war in Ukraine.
According to the new OFSI guidance, crypto companies now must immediately report any breach of the rules and freeze the assets involved or else face financial penalties or criminal charges.
We shall remind that profound economic sanctions were globally introduced in late February and early March following Russia’s invasion of Ukraine. Although banks and other financial institutions have been complying with stringent requirements regarding sanctions ever since, service providers in the crypto market may have avoided the general rules. From now on, crypto exchanges will not be exempt from sanctions obligations.