US Warns Financial Institutions About Sanction Evasion Via Cryptocurrency

Bracewell’s Seth DuCharme told CQ Roll Call that determining the identities of parties that are moving cryptocurrency can be difficult.

“Sanctions are all about the who and the where,” said DuCharme. “Any anonymized means of moving value are going to potentially present challenges to the sanctions regime and crypto is one of those potential challenges.”

Crypto exchange Coinbase recently said customers who live in a sanctioned country cannot open an account on its platform. This comes on the heels of the Financial Crimes Enforcement Network, or FinCEN, urging banks and other financial services companies to watch for Russian efforts to evade sanctions for invading Ukraine, including the use of cryptocurrencies. FinCEN, a bureau within the US Treasury Department, is working to prevent money laundering and financial crime.

Click here to read more from CQ Roll Call (subscription required).