US Government Enforces Economic Sanctions on Digital Assets

The US government has made it clear that digital assets are not exempt from economic sanctions. The Office of Foreign Assets Control (OFAC) enforces these regulations, treating digital currencies the same as traditional currencies.

When a business encounters cryptoassets subject to OFAC sanctions, they must immediately block access to those funds and report it to OFAC. This applies to individual wallets and broader entities like virtual currency exchanges and mixers.

OFAC has designated various actors for their involvement in illicit activities, including state-sponsored hacking groups, ransomware operators, and virtual currency exchanges that facilitate illicit transactions.