The pitfalls of risk assessment in cryptocurrencies

Bitcoin addresses now in US sanctions lists

Last month, the US Office of Foreign Assets Control (OFAC), employing the so-called Foreign Narcotics Kingpin Designation Act, sanctioned three Chinese nationals for their role in an international drug trafficking ring.

In of itself, the move is not unusual. But looking beyond the headlines, OFAC's press release contains some intriguing information. According to the agency, the Chinese group had laundered much of its drug proceeds via digital currency, mainly bitcoin.  Cryptocurrencies: The next chapter lies in regulation In response, OFAC included 11 bitcoin addresses allegedly tied to the Chinese nationals as personal identifiers in its Specially Designated Nationals (SDN) list.  Strictly speaking, the addresses themselves have not been sanctioned; their inclusion in SDN lists is simply desig...