Sanctions
Government-imposed restrictions on financial transactions with specified persons, entities, or jurisdictions.
[[Ofac]] (US), HMT (UK), and EU sanctions regimes bind stablecoin issuers operating in those jurisdictions. Issuers freeze designated addresses and refuse mint / redeem. Sanctions enforcement is the primary expression of Censorship risk.
Related terms
- OFACThe US Treasury bureau that administers economic sanctions — its lists bind US-touching stablecoin issuers.
- Censorship riskThe risk that an issuer or chain operator freezes, blocks, or refuses to settle a holder's tokens.
- AML (anti-money-laundering)A body of law and procedure obliging financial institutions to detect and report suspicious activity.