Sanctions Compliance for Cryptocurrency: Addressing Recent Developments in Guidance and Regulatory Expectations
As cryptocurrency becomes a more popular vehicle for investment, it is increasingly important to understand how criminals and other malign actors may use cryptocurrencies to move illicit funds and attempt to access the global financial system. The use of cryptocurrency as a tool to evade sanctions or otherwise transfer illicit funds largely stems from its peer-to-peer transfer capabilities and pseudo-anonymity, among other factors. This opens the door for individuals or governments that seek to evade sanctions, such as Iran, Venezuela, Russia, or North Korea, to exploit and/or develop new cryptocurrencies. In response to the sanctions-related risk presented by cryptocurrencies, governments and regulators are increasingly releasing new guidance, regulation, and enforcement actions. In this session, Kharon is joined by industry peers at Guidehouse to provide a strategic overview of recent cryptocurrency developments, particularly as they relate to economic sanctions, and to share insights on best practices for addressing these challenges. Discussants will also share views on expectations for 2021 and beyond.