OFAC

Definition ∞ OFAC stands for the Office of Foreign Assets Control, a US Treasury Department agency that administers and enforces economic and trade sanctions. These sanctions target foreign countries, organizations, and individuals involved in activities deemed a threat to US national security or foreign policy. In the digital asset space, OFAC lists cryptocurrency addresses associated with sanctioned entities. Compliance with OFAC regulations is mandatory for US persons and entities dealing with digital assets.
Context ∞ OFAC’s role in the digital asset sector is a critical and evolving area of regulatory focus. Discussions often center on how to effectively enforce sanctions in a decentralized environment and the implications for privacy-enhancing technologies. News reports frequently detail OFAC’s actions against cryptocurrency mixers or addresses linked to illicit activities, highlighting the agency’s increasing oversight of the digital asset landscape.