UK Financial Authority Forces Financial Services Companies And Crypto Assets To Comply With Sanctions On Russia

UK forces financial services companies and crypto companies to comply with sanctions on Russia. (photo: doc. pixabay)

JAKARTA – Financial services companies including those in the Cryptoassets sector were warned by UK regulatory agencies on Friday, March 11, that they are expected to ensure sanctions imposed on entities and individuals in Russia and Belarus are complied with.

"We are working 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 crypto assets," the UK financial regulator said in a statement.

"We also remain prepared to act in the event of a sanction violation," added a statement from the Office of Financial Sanctions Implementation, the Financial Conduct Authority (FCA) and the Bank of England.

The statement said the use of crypto assets to evade economic sanctions is a criminal offence. They also state that sanctions regulations do not differentiate between crypto assets and other forms of assets.

The FCA has written to all listed Cryptoassets companies and those holding temporary registration status, highlighting the entities and individuals that have been sanctioned.

"Both the FCA and the Prudential Regulatory Authority will act if they see a legitimate financial institution supporting a (Russian) crypto asset company operating in the UK illegally," the statement said.

A senior EU official said last week that the European Commission was also studying whether cryptoassets were used to get round financial sanctions imposed on Russian banks.