Former Banking Supervisor Says Blockchain Cannot Bypass Sanctions

Former banking supervisor Yair Avidan said blockchain transfers and digital tokens do not remove sanctions prohibitions or the compliance duties of financial counterparties. In newly reported responses to a proposed cryptocurrency response to sanctions, he said payments still depend on banks, payment providers, trading partners and available liquidity. Avidan distinguished sanctions evasion from using blockchain to keep payments operating when infrastructure fails. Former Finance Ministry director-general Yarom Ariav warned that talk of circumventing sanctions could undermine confidence in Israel's economy, investment and its financial reputation.