OFSI_Cryptoassets_Threat_Assessment.pdf (3 MB)

OFSI assesses that UK cryptoasset firms are almost certainly under-reporting suspected financial sanctions breaches and face direct compliance exposure from cryptoasset-related sanctions risks. The assessment states it is highly likely that UK-based cryptoasset firms are currently at risk of being targeted by DPRK-linked hackers and IT workers seeking to steal or obtain funds through illicit means. It frames cryptoassets as subject to the same financial sanctions rules as other assets and emphasizes reporting obligations introduced for cryptoasset firms as relevant firms in August 2022. The DPRK-related finding matters because it links cyber-enabled theft, illicit IT worker revenue generation, and sanctions-compliance failures to regulated UK cryptoasset services.