What Is Sanctioned Cryptocurrency?
Sanctioned cryptocurrency is a type of digital currency that has been subject to economic sanctions imposed by governments, international organizations or other entities. This typically includes restrictions on trading and investing in the asset, as well as any potential fines or criminal prosecution for engaging in sanctioned activities. For example, citizens of countries under United Nations sanctions may be limited from purchasing certain cryptocurrencies.
The goal of these regulations is to prevent foreign actors from using digital currencies to circumvent existing financial rules and regulations, such as those related to money laundering and terrorist financing. As cryptocurrency usage continues to grow throughout the world, governments are increasingly taking a more proactive role in regulating this asset class.
In some cases, sanctioned cryptocurrencies can be traded through approved exchanges while still adhering to applicable laws and regulations. In other instances though – particularly when dealing with high-risk markets – investors may need additional permissions before they are able to purchase certain coins or tokens. It’s important for traders and investors alike to pay close attention to their local laws before attempting any transactions involving sanctioned assets.
