The US Treasury Department issued procedure on how Office of Foreign Assets Control (OFAC) could include cryptocurrency address to the sanction list of the country.
The US Department of the Treasury has declared it might sanction cryptocurrency addresses in cases where officials find them connected with blacklisted individuals. Department mentioned in the guidelines saying that it would add crypto addresses in the sanctions list to notify the community about definite possessions associated with a blacklisted individual.
A spokesperson disclosed that the department would discover cryptocurrency addresses via its standard sanction. Thus, targeting procedures involving the application of law enforcement data, confidential intelligence information, and openly available information.
A person called Dave Muray, who used to counsel the Treasury undersecretary for financial intelligence and terrorism. However said that cryptocurrency address may be the most consistent identifiers for illegal actors who operate behind the internet stage.
“Even though people will probably stop using an address once it has been listed. The addresses will be extremely valuable to financial institutions”.
“They can use the addresses to build out the sanctioned person’s network. And potentially identify the new address that a sanctioned person is using”.
The Document procedure suggests that cryptocurrency enjoyer such as exchanges and other companies associated with cryptocurrency must conduct a risk-based compliance program.
Cryptocurrency addresses consist of number and letters to form codes and act as end addresses for the transfer of cryptocurrency.
The move of the US Treasury exists amid the G20 conference of finance ministers. Also central bankers held in the capital of Argentina. All the participants might agree that cryptocurrencies cannot be classified as a form of money.
Originally published at coinpedia.org on March 22, 2018.
