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UK rules expand criminal exposure for wallet-related crypto payments
The new Section 17C offense took effect July 17 and carries up to 14 years in prison if a recipient retains a qualifying benefit knowing, or reasonably should know, it came from the designated body.
The UK designation of Iran's Islamic Revolutionary Guard Corps took effect on July 17, creating new criminal exposure for UK-linked crypto businesses and users who receive or retain value connected to the group, according to CryptoSlate.
Under the National Security Act 2023 changes, the IRGC was added to Schedule 6A, and a new Section 17C offense can carry as much as 14 years in prison. The charge hinges on whether a person obtains, accepts, or retains a qualifying material benefit and knows, or in light of other matters known, ought reasonably to have known the benefit came from the designated body.
CryptoSlate notes the law does not mention crypto assets by name, but its wording is broad enough to potentially cover money or other value supplied directly or indirectly, including through intermediaries. This could make stablecoins and other on-chain transfers subject to scrutiny, even though wallet attribution and timing may be operationally difficult.
The outlet also highlights that a designation alone does not automatically trigger UK asset freezes or dealing restrictions tied to sanctions, and freezing stablecoins would require separate action by an issuer or another legal authority. Instead, the central issues for enforcement are whether the value can be tied to the IRGC and what the recipient knew at the time, including whether a network settles an incoming transfer before a user can refuse it.