To ask Her Majesty's Government what plans they have to identify cryptocurrency exchanges supporting sanctioned Russian individuals and restrict their activities.
Answered on
4 April 2022
The use of cryptoassets to circumvent economic sanctions is a criminal offence under the Money Laundering Regulations 2017 and regulations made under the Sanctions and Anti-Money Laundering Act 2018. The government and UK authorities are actively monitoring the use of cryptoassets to detect potential instances of sanctions evasion, and stand ready to act in the event of sanctions breaches.
On 11 March HM Treasury, the FCA and the Bank of England issued a statement setting out the expectation that cryptoasset businesses play their part in ensuring that sanctions are complied with. The statement sets out the legal and regulatory requirements on cryptoasset businesses with regard to sanctions, as well as steps that firms can take to reduce the risk of sanctions evasion.
The FCA has also written to all registered cryptoasset firms and those holding temporary registration status to highlight the application of sanctions on various Russian entities and individuals.