Digital Currencies’ Evasion: Sanctions Enforcement and the Digital Battlefield

Digital currencies are popular tools of sanctions evasion. Therefore, effective sanctions enforcement requires a multifaceted approach that addresses both the structural complexities of digital currencies and the gaps in international cooperation. This policy outlook examines challenges arising from inherent characteristics of digital currencies and lack of universal compliance and enforcement in sanctions evasion and offers solutions to overcome such challenges to prevent sanctions evasion through digital currencies. Solutions include those technical and regulatory ones aimed at increasing compliance as well as the ones targeting other states’, organisations’, and private sectors’ inclusion in the enforcement efforts.