Since the invasion of Ukraine, there has been increased attention on the crypto and digital asset industry’s ability to remain compliant with global sanctions levied against Russia, as well as fears that crypto platforms may undermine government efforts to inflict damage through targeted sanctions.
As highlighted at the GDF Emergency Summit on Sanctions hosted in March, the risk of sanctions evasion through crypto platforms is marginal and firms are generally compliant with sanctions requirements, though continued vigilance is of paramount importance.
This report looks at the operational components to sanctions compliance in the industry, as well as policy considerations for further mitigating sanctions evasion risks.