The US Department of the Treasury is conducting investigations into cryptocurrency platforms to identify actions facilitating violations of sanctions imposed on Iran. These investigations extend beyond crypto wallets to include entire exchanges. The Treasury aims to ensure that cryptocurrencies are not used to circumvent sanctions against Iran. The growing popularity and decentralized nature of cryptocurrencies have introduced new methods for breaching sanctions. The US and other countries have imposed various economic sanctions on Iran to restrict its financial resources, but Iran has attempted to challenge these restrictions through cryptocurrencies, attracting global regulatory attention. TRM Labs, a firm specializing in detecting crypto risks and fraud, noted that the Treasury’s investigations now focus on monitoring entire platforms rather than just wallets to more effectively prevent sanctions violations. This move seeks to promote transparency and legal compliance within the crypto market. While such investigations may strengthen the legal framework, they also pose the risk of sanctions and fines for some platforms. Consequently, cryptocurrency users and investors are advised to exercise caution and choose reputable platforms. This development highlights the expanding regulatory reach over digital currencies alongside traditional financial systems to combat financial crimes and sanctions breaches.
Source: coindesk
