UK agency warns cryptocurrency exchanges not to report potential sanctions violations

The UK’s Office of Financial Sanctions Implementation (OFSI) has decided by Her Majesty’s Chancellor of the Exchequer that cryptocurrency exchanges must report any cryptocurrencies that could be used to evade Russian sanctions.

in August messageOFSI says exchanges must report suspected violations of the agency and freeze assets or face criminal charges or financial penalties.

The sanctions agency added that “any other payment instrument” and assets “used to obtain funds, goods or services,” including cryptocurrency, would fall under the definition of a sanctions violation if used with such intent.

So did the British Financial Authority FCA in March that financial companies and cryptocurrency exchanges”They are expected to play their part in ensuring compliance with the sanctions,” while providing strict guidelines on how best to ensure sanctions against Russia are enforced.

It was the first round of sanctions against Russia most dangerous On February 24, after Russia began its invasion of Ukraine.

Entities involved in destabilizing or undermining Ukraine’s sovereignty and supporting the Russian government are subject to a “freezing of funds and financial resources,” the office said. to me to the updated Financial Sanctions Notice.

Cryptocurrency industry responds to sanctions

When Ukrainian Deputy Prime Minister Mikhailo Fedorov called for cryptocurrency exchanges to… Ban Russian usersThe industry had mixed ideas about how to respond.

In March, Binance said Reuters thats it won’t prevent Russian citizens of the stock exchange, only the target of sanctions.

Coinbase CEO Brian Armstrong chirp That’s while ordinary Russians use “cryptocurrencies”, if the United States a call For Prohibition, “Of course we will follow those laws.”

However, Kraken CEO Jesse Powell tweeted that Russian accounts cannot be frozen.without a legal requirement to do so.”

At the time of publication, no explicit decision has been made to ban Russian crypto users.

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