In financial regulation sanctions are penalties or enforcement levied against individuals or companies which forbid entities within a jurisdiction from engaging in contracts or new financial transactions with the sanctioned entity. Sanctions are a form of statecraft that allow nation states to exercise their controls over foreign nationals and individuals in the interests of advancing the foreign policy of the state.
Crypto assets are a means of evading sanctions enforcement by permitting illicit financing through regulatory arbitrage.
See also money laundering, KYC, and illicit financing.
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