Russia Sanctions and Sanctions Evasion with Cryptocurrencies

Russia Sanctions Crypto Evasion

Sanctions imposed on Russia over its unprovoked attack on Ukraine have left the Office of Foreign Assets Control concerned that Russia may turn to crypto mining and transactions to circumvent western sanctions. Crypto mining (which is used to validate new digital currency transactions) consumes a lot of energy.

The concern is that Russia may utilize its natural resources to conduct crypto mining to evade sanctions, a tactic deployed by both North Korea and Iran in the past. Crypto mining can bypass sanctions screening as it avoids the so-called fiat-to-crypto on- and off-ramps at virtual exchanges, making it hard to detect. 

Sanctions Evasion Using Crypto 

sanctions evasion

After several nations implemented strict sanctions against Russia, following the Ukrainian invasion, there were several concerns raised about the possibility that Russia would use cryptocurrencies to evade sanctions. Visa, Mastercard and PayPal have suspended services in Russia; they have been barred from SWIFT and the Russian Central Bank’s assets were seized. As the country is […]

AML Regulations and the Metaverse

AML Regulations

The term Metaverse entered the world’s collective consciousness in October 2021 when Facebook rebranded as Meta and founder Mark Zuckerberg introduced a virtual replica and announced that human beings might soon migrate to a virtual world governed entirely by its users. According to Gartner, by 2025, 25% of people will spend at least an hour in the metaverse a day, working and transacting in a virtual space. Investors, legislators and employees are still coming to terms with what the metaverse is, what it may mean, and how current regulations will govern the vast number of transactions occurring in virtual environments every day. 

An Overview of Crypto Regulations Around the World 

Crypto Regulations around the world

US Securities and Exchange Commission Chair Gary Gensler has famously described cryptocurrencies as the “Wild West” of the financial world due to the lack of laws and regulatory frameworks governing the digital currency space. In most instances, cryptocurrencies are subject to anti-money laundering policies and standards, and in 2021 crypto crime accounted for more than […]

AML Risk Trends Shaping the Industry in 2022

Money laundering has been around for thousands of years. The reasons for laundering money are largely unchanged – people want to disguise the true source of their income. However, the methods used to launder money change with business trends and technology. Technology has exploded in recent decades, and with it opportunities to launder money. In […]

AML & Sanctions Compliance for NFT Marketplaces

NFT

The global market for non-fungible tokens hit $42bn this year as digital images fast became popular investment assets, rivalling the size of the fine art world. Considering that NFT sales were at $100m in 2020, it seems as though we are on the precipice of a looming digital gold rush in 2022.  That being said, […]

Fan Tokens – Here’s What You Need To Know About The Newest Crypto Asset Facing Regulation

Crypto Regulation

After more than a decade, cryptocurrencies have risen to prominence in global finance, promising more security, value, and convenience through the blockchain. In response, governments stepped in to provide consumers with further protections. We’ve previously discussed AML frameworks, which help increase the level of transparency in transactions and lower the risk that crypto will be used […]

Sanctions Compliance for Crypto Businesses

This guide will help to understand the Crypto Industry’s specific challenges, how to identify red flags and implement best practices for a comprehensive compliance process.

AML Guide for the Cryptocurrency Industry

Financial institutions are subject to AML regulations because they face a direct risk of being abused for money laundering and terrorist financing. This guide will detail all of the regulations that apply to the Crypto industry as well as how they should be reflected in their business operations.

The EU’s 6th Anti-Money Laundering Directive (6AMDL)

The European Union’s AML directives aim to protect financial systems from money laundering and terrorist financing. Although each member state can design a unique framework to support these directives, they serve as common goals for each of them. Failing to comply with these legal procedures can also lead to punitive actions like fines and penalties.

The EU’s 5th Anti-Money Laundering Directive

The EU Directives are legislative acts that establish common goals for all EU member states. Each country has the flexibility to determine its own framework to meet these directives, so long as they are met. Although these are legally non-binding, failure to comply can lead to fines and other punitive actions.

Let’s dive into everything you need to know about the EU’s 5th Anti-Money Laundering Directive!

AML Regulations and Cryptocurrency Businesses

Anti-money laundering (AML) and counter-terrorism financing (CTF) laws apply to regulated businesses around the world, and failure to comply with these rules can lead to costly penalties and sanctions. While these regulations are generally viewed in the scope of traditional financial institutions, they also pose implications for cryptocurrency businesses.