Sui’s emergency freeze echoed established practices in traditional finance, where transactional holds are both standard and mandatory in response to fraud events

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Governments and regulatory bodies across the world have imposed a slew of rules to fight financial crime. The European Union has adopted stricter AML rules under its Markets in Crypto-Assets (MiCA) framework. One notable rule requires crypto providers to collect and verify identity information for even unhosted wallets. The FATF Travel Rule mandates financial institutions and crypto exchanges to share sender and receiver information for transactions above a certain threshold. Non-compliance often leads to freezes.

Banks and crypto exchanges freeze accounts and blacklist wallets as part of Anti-Money Laundering (AML), counter-terrorism financing (CTF) and sanctions compliance efforts.

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