The cryptocurrency processing service BitPay will pay $507,375 for sanctions-law violations, according to the уведомлении of the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury.
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According to OFAC, BitPay allowed individuals located in sanctioned jurisdictions to conduct transactions with residents of the United States. The regions include Crimea, Cuba, North Korea, Sudan, Iran and Syria.
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From June 2013 to September 2018, BitPay processed 2,102 transactions by individuals located in “sanctioned jurisdictions,” worth a total of $128,582 in cryptocurrency.
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The company knew who it was dealing with, as it possessed location and IP address information, OFAC stressed.
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Under the charges, BitPay could have faced a much larger penalty, but OFAC considered mitigating factors. These include the introduction of identity verification, IP address blocking in sanctioned regions, and other steps.
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In December, OFAC fined BitGo, the custodial service, $93,830 for similar charges.
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