Virtual currencies are increasingly significant in the global economy, bringing greater exposure to sanctions risks, such as involvement by sanctioned individuals or entities in transactions. The virtual currency industry—including technology companies, exchangers, administrators, miners, wallet providers, and users—plays a crucial role in preventing these actors from using virtual currencies to evade sanctions and undermine U.S. foreign policy and national security. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued guidance in October 2021 to help the virtual currency industry mitigate these risks. OFAC sanctions compliance obligations apply equally to virtual and traditional fiat currency transactions. Industry members must ensure they do not engage, directly or indirectly, in prohibited transactions, such as dealings with blocked persons or property. This guidance helps the virtual currency industry evaluate sanctions-related risks, build a risk-based compliance program, protect against sanctions violations, and understand OFAC’s recordkeeping, reporting, licensing, and enforcement processes. OFAC is committed to working with the virtual currency industry to promote compliance and due diligence best practices.
Read the guidance here: Sanctions Compliance Guidance For The Virtual Currency Industry