Definition ∞ Global sanctions are punitive measures imposed by nations or international organizations against other states, entities, or individuals to achieve specific foreign policy or security goals. These restrictions typically limit trade, financial dealings, or asset movements. In the digital asset realm, they seek to prevent illicit financial activity using cryptocurrencies.
Context ∞ The intersection of global sanctions and digital assets is a frequent subject in crypto news, as governments work to prevent the evasion of restrictions through virtual currencies. Adhering to these sanctions poses considerable challenges for digital asset service providers, who must implement stringent know-your-customer (KYC) and anti-money laundering (AML) procedures. The ongoing debate concerns the practical effectiveness of such controls within a decentralized and pseudo-anonymous environment.
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