– The UK’s Office of Financial Sanctions Implementation has updated its guidance to include “cryptoassets” among those that must be frozen if sanctions are imposed on a person or company.
– The rules will mean crypto exchanges are committing a criminal offence if they fail to report clients designated for sanctions.
– The rules will apply to all cryptoassets, including digital currencies, such as bitcoin, ether and tether, and other notionally valuable digital assets, such as non-fungible tokens.
– The update is in response to concerns that cryptoassets may be used to evade sanctions imposed in response to Russia’s invasion of Ukraine.
– Financial sanctions on people and companies linked to the regime of Vladimir Putin have been among the UK’s most prominent responses to the invasion of Ukraine.