OFSI Flags Crypto Sanctions Risks in July 2025 Report
On 21 July 2025, the UK Office for Financial Sanctions Implementation (OFSI) published its latest sector-specific threat assessment focusing on UK crypto-asset firms’ exposure to financial sanctions breaches, covering activity from January 2022 to May 2025 (the Assessment).
Why Did OFSI Focus on Crypto-Assets?
OFSI’s decision to prioritise crypto-assets reflects OFSI’s view that crypto-assets are increasingly being misused for sanctions evasion and financial crime purposes. Under the Financial Services and Markets Act 2000, FCA-registered crypto-asset firms include those offering exchange services, operating crypto ATMs, or providing custodian wallet services (see here for a full list of registered firms). The rapid growth…
