OFAC, The U.S. Treasury Department is releasing guidelines for the cryptocurrency industry.
Accordingly, The Department’s Office of Foreign Assets Control (OFAC) is publishing new instructions for crypto businesses. Also, for investors too, while noting that individual investors may expect to be under scrutiny.
More so, this is in terms of who they can and can’t deal with. Furthermore, just like traditional financial institutions does.
“The growing prevalence of virtual currency as a payment method…”
“brings greater exposure to sanctions risks. Accordingly, the virtual currency industry,..”
“including technology companies, exchangers, administrators, miners, wallet providers,..”
“and users, plays an increasingly critical role in preventing sanctioned persons from exploiting…”
“virtual currencies to evade sanctions and undermine US foreign policy and national security interests.“
OFAC talks on Avoiding Violations
Additionally, The brochure states that everyone engaging in crypto activities must be careful
Especially, regarding who they transact with so as to avoid violating sanctions rules.
“OFAC is issuing this guidance to assist the virtual currency industry in mitigating…”
“these risks. OFAC sanctions compliance obligations apply equally to transactions…”
“involving virtual currencies and those involving traditional fiat currencies.”
“Members of the virtual currency industry are responsible for ensuring that they do not…”
“engage, directly or indirectly, in transactions prohibited by OFAC sanctions, such as…”
“dealings with blocked persons or property, or engaging in prohibited trade- or investment-related transactions.”
Also, OFAC has 35 different sanctions in place. This of course, with the most common being limitations on dealings with foreign governments. Then, also the entire countries or geographic locations.
Then, specifically listed individuals. Accordingly, it has the power to impose “substantial” civil penalties for noncompliance.