Crypto exchanges are now required to notify the UK authorities of any suspected sanctions violations under new regulations introduced in response to concerns that bitcoin and other cryptoassets are being used to dodge restrictions imposed in reaction to Russia‘s invasion of Ukraine.
On August 30, official guidelines was revised to specifically include “cryptoassets” among the things that must be blocked if sanctions are placed on a person or business, reports The Guardian.
Cryptoassets could include non-fungible tokens (NFTs) in addition to digital currencies like bitcoin, ether, and tether as well as other hypothetically valuable digital assets.
According to the regulations established by the Treasury’s Office of Financial Penalties Implementation, cryptocurrency exchanges will be breaking the law if they fail to report customers who are subject to sanctions.
The regulations mandate that cryptocurrency exchanges take quick action if they suspect that one of its customers is subject to sanctions or that penalties are being violated, which places them under the same obligations as professionals like estate agents, accountants, lawyers, and jewellers.