UK authorities require crypto exchanges to report alleged violations of sanctions

The UK government has ordered crypto exchanges to report alleged violations of sanctions, the new rules were introduced amid concerns that crypto assets could be used to circumvent restrictions against Russia, The Guardian writes.

“The official rules were updated on August 30 to explicitly include crypto-currency assets among those that must be frozen if sanctions are imposed on an individual or entity. In addition to digital currencies such as bitcoin and ethereum, these may include other digital assets, such as non-fungible tokens,” the newspaper writes.

The rules set by the U.S. Treasury Department’s Sanctions Enforcement Office would mean that crypto exchanges are committing a criminal offense if they fail to report sanctioned customers. Under the rules, crypto exchanges must act immediately if they suspect that one of their clients is under sanctions, or if they suspect a sanctions violation.

In March, UK financial regulators released a statement confirming that crypto assets are subject to sanctions. In April, the EU also banned large crypto transactions with Russia.