Bank of England Calls on Crypto Firms to Impose Sanctions

Sunday, March 13, 2022 2:47 PM

Bank of England warns against using crypto assets to evade sanctions.

The UK’s central bank has called on crypto firms to ensure sanctions are enforced amid the Russia-Ukraine dispute.

The Bank of England and the Financial Conduct Authority (FCA) issued a joint statement on Friday reiterating that financial services firms, including the crypto asset industry, are “expected to play their part” in enforcing sanctions. Financial regulators have said they are working with international partners amid concerns that digital assets offer people a way around punitive economic measures.

“We work closely with government and law enforcement partners here and abroad, including regulators, to share intelligence and take action to prevent the evasion of sanctions, including through of crypto-assets. We also remain ready to act on breaches of sanctions,” the Bank of England said in a statement.

The Financial Conduct Authority has written to regulated crypto firms in the UK reminding them of their responsibilities when it comes to ensuring sanctions are enforced.

Crypto firms are in the spotlight amid the conflict between Russia and Ukraine. While crypto has proven to be an important source of fundraising for the Ukrainian government, which has received over $60 million in digital asset donations, governments are concerned about its use to circumvent punitive economic measures. against Russia.

Ukraine’s Deputy Prime Minister called on crypto exchanges to block all Russian and Belarusian accounts soon after the invasion. Calls for a blanket ban on Russian users have been resisted by the world’s largest crypto exchanges, including Binance, Coinbase and Kraken.

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