US Dept. Of Treasury Seeks To Add Crypto Wallets Of Sanctioned Persons To Blacklist

This Should Start Soon

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In accordance with a document which was issued on March 19, the treasury department in the US might begin the process of adding digital currency addresses to sanctions. This is if they can tie them to a sanctioned individual.

To make this easier, the OFAC (Office of Foreign Assets Control) may begin the process of addition of the digital currency addresses and also wallets to the Blocker Persons List and also in the Specially Designated Nationals (SDN). Therefore, the measure would then, “alert the public of specific digital currency identifiers associated with a blocked person.”

The document stated that the OFAC listings might not be exhaustive.

It stated;

“Parties who identify digital currency identifiers or wallets that they believe are owned by, or otherwise associated with, an SDN and hold such property should take the necessary steps to block the relevant digital currency and file a report with OFAC that includes information about the wallet’s or address’s ownership, and any other relevant details.”

The OFAC however, does not offer any compliance solution. It, therefore, makes suggestions that the development of risk-based, a tailored program of compliance is linked to the exchanges, individual corporations and also cryptocurrency users. Therefore, the program mechanism just looks like the KYC (Know your customer) procedure. It’s because it incorporates sanction screening and all the other measures relevant to the context. Therefore, US-based firms and individuals will make sure that they are not associated with the various prohibited transactions by sanctions, illegal trade and also the investment related transactions.

Therefore, the Treasury claims to use sanctions in the fight against malicious actors and criminals which take advantage of the cryptocurrencies.

The treasury claims;

“To strengthen our efforts to combat the illicit use of digital currency transactions under our existing authorities, OFAC may include as identifiers on the SDN List specific digital currency addresses associated with blocked persons.”

The document is meant to follow the order issued by President Trump banning trading of Petro in the US and prohibiting American investors from engaging themselves in Initial Coin offering of the cryptocurrency. Therefore, classified documents earlier this week from Edward Snowden revealed the plans by National Security Agency to create an application which tracks down and deanonymizes the cryptocurrency users.

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