US government action escalates, blacklist of cryptocurrency addresses will grow longer

The US government is closely watching illegal activities related to Bitcoin and other cryptocurrencies.

The cryptocurrency compliance expert said that the “blacklist” of blockchain addresses established by the government related to crime will definitely increase rapidly.

Crypto

On Wednesday, the US Treasury imposed sanctions on three Chinese “drugs”, and the government said they used bitcoin to launder money. Subsequently, the US Department of the Treasury's Office of Foreign Assets Control (OFAC) added 11 bitcoin addresses and 1 Litecoin address to its Specially Designated Nationals list to ensure that no Americans can use the relevant address to conduct business. .

This is the second time OFAC has blacklisted bitcoin addresses in a year – the first time it was against two Iranian citizens last November. But according to Jesse Spiro, head of global policy at Chainalysis, such actions are just beginning.

“We expect OFAC to take further action to blacklist the cryptocurrency addresses of these individuals and other people involved in drug trafficking.”

He said that cases like this further prove that it is necessary to develop a "strict cryptocurrency compliance program to immediately identify high-risk behaviors and activities."

Juan Llanos is a compliance expert and consultant for several cryptocurrency companies. This is largely due to the “inherent characteristics of the public blockchain”, he said.

Chainalysis says that the ability to quickly detect and manage suspicious transactions can play an important role in preventing and reducing cryptocurrency losses caused by security breaches. The company specializes in providing compliance tools for government agencies and private companies, such as cryptocurrency exchanges.

John Dempsey, vice president of Chainalysis, said in a statement:

“As legislators and regulators increase their focus on cryptocurrencies, cryptocurrency practices are more important than ever in compliance with sanctions. In response to sanctioned entities, hacked funds, dark market and other illegal Every minute is important when it comes to the risk of activity."

Llanos explained that exchanges and other financial institutions under US jurisdiction are obliged to screen "masked people." Anyone who violates these sanctions may face up to $10 million in civil fines and criminal charges.

The public blacklisting of cryptographic currency addresses is part of the financial pressure exerted by OFAC and FinCEN (Financial Crime Enforcement Network) on criminals and criminal organizations.

Spiro said:

“With these processes, agencies and exchanges can work with governments and law enforcement agencies to identify and prevent such illegal activities.”

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Market

Get Ready for a Crypto Carnival - New Listings and Delistings!

Check out our latest rundown of notable digital asset listings, delistings, and trading pair updates from crypto exch...

Blockchain

FTX owns 38 properties in the Bahamas worth over 200 million US dollars.

The company stated that prior to filing for bankruptcy last year, it had paid out billions of dollars to executives, ...

Blockchain

FTX Founder SBF The Astonishing Fall of the Former Cryptocurrency King

In the development process of a new technology, there will always be a moment when the hype is so common that it is t...

Blockchain

Inside story How FTX stays up all night to prevent a $1 billion cryptocurrency theft case

On the same day FTX announced bankruptcy, someone began stealing hundreds of millions of dollars from its vault. An i...

Blockchain

Three major domestic virtual currency exchanges focus on compliance business and actively engage with local governments and state-owned enterprises

China Times (www.chinatimes.net.cn) reporter Ran Xuedong trainee reporter An Lingfei Beijing reports The currency cir...

Blockchain

Gu Yanxi: The Governance Mechanism of the Future Encrypted Digital Asset Trading Industry

More and more encrypted digital asset exchanges have emerged in the US market recently. In addition to existing encry...