- According to recent instructions from the Treasury’s Office of Financial Sanctions Implementation, cryptocurrency exchanges are required to notify sanction violations in the UK (OFSI).
- The Financial Conduct Authority (FCA) of the UK has previously stated that cryptocurrency exchanges must do their share to ensure that sanctions are followed.
- The Office of Financial Sanctions Implementation (OFSI) of the UK Treasury has modified its sanctions guidance to cover cryptocurrency exchanges.
UK: Russia’s invasion of Ukraine this year, financial sanctions have drawn more attention, leading some nations, like the UK, to impose limits on contacts with Russian firms. They can range from targeted asset freezes to restrictions on financial services, and they are implemented to fulfill foreign policy or national security purposes.
According to revised documentation from the OFSI, cryptocurrency exchanges now need to comply with severe Russian sanctions rules that banks and financial services companies have been subject to for months. The revised OFSI guidance, which went into effect on August 30, was first reported by The Guardian.
Read More: OnlyFans Creators made $3.9 billion in 2021 increasing by 115% annually
The amended document states that exchanges must notify the OFSI of any suspected breaches and freeze cash in order to avoid prosecution or financial penalties. According to the sanctions rules, reporting requirements are also applicable to providers of custody wallets.
In March, the UK Financial Conduct Authority (FCA) stated that cryptocurrency exchanges must do their share to ensure that sanctions are followed. Additionally, the agency offered instructions on how to comply.
