OFSI publishes threat assessment on cryptoasset sanctions compliance risks
The Office of Financial Sanctions Implementation (OFSI) has published a threat assessment examining sanctions compliance risks in the UK cryptoasset sector from January 2022 to May 2025. Key developments include the March 2025 disruption of designated Russian exchange Garantex, resulting in the seizure of $US 26m in illicit assets, and the February 2025 North Korean cyber attack on Bybit exchange that resulted in the theft of $US 1.5bn in cryptoassets. The assessment outlines compliance vulnerabilities and provides detailed guidance for UK cryptoasset firms on reporting obligations.