Crypto firms need to do their part to enforce economic sanctions on Russia and Belarus, the U.K.’s financial regulators say.
In a joint statement, the U.K.’s Financial Conduct Authority (FCA), the Bank of England and the Office of Financial Sanctions Implementation (OFSI) stressed that all firms, including firms in the crypto sector, are expected to help enforce economic sanctions.
“Financial sanctions regulations do not differentiate between cryptoassets and other forms of assets,” it said. “The use of cryptoassets to circumvent economic sanctions is a criminal offence.”
The regulators noted that they are ready to act in the event that sanctions are breached.
“We are working closely with partners in government and law enforcement both here and abroad, including regulatory authorities, to share intelligence and act to prevent sanctions evasion, including through cryptoassets,” they said.
The statement noted that the FCA has contacted all registered crypto firms and firms with temporary registration to highlight the application of sanctions.
Additionally, the regulators called on financial institutions to ensure they’re dealing with registered crypto firms and warned that they will act if they see authorized financial firms supporting crypto firms that are operating illegally.
The statement also provided guidance to all firms on enforcing sanctions.