Coinbase blocks 25,000 accounts associated with Russia to support sanctions

Coinbase blocks 25,000 accounts associated with Russia to support sanctions

Coinbase has blocked 25,000 wallet addresses, which, according to the cryptocurrency exchange, are Russian individuals and organizations that are involved in illegal activities.

According to a blog post on Monday, Paul Grewal, Chief Legal Officer from Coinbase, said that many of the accounts had been identified by their own “proactive” examinations of the stock exchange.

The step is part of a more comprehensive reaction to the invasion of Ukraine by Russia, according to the stock exchange. The addresses were shared with the US government to "further support the enforcement of sanctions".

"Sanctions play a crucial role in promoting national security and the deterrent of illegal attacks, and Coinbase fully supports these efforts by the government authorities," says the article.

The step takes place days after Brian Armstrong, CEO from Coinbase, said in A Twitter Last Wednesday did not believe that there was a "high risk" that Russian oligarchs use crypto Avoid.

"Since it is an open main book, the attempt to sneak a lot through crypto would be more understandable than the use of US dollar money, art, gold or other assets," said Armstrong.

exchanges in the United States and abroad have agreed to follow sanction orders, but refused to prohibit Russians due to their nationality in response to the ongoing Ukrainian-Russian conflict.

The Russian military advocated President Vladimir Putin on February 24 after weeks of circulation and warning through the US secret service on Ukrainian territory. The conflict has triggered a humanitarian crisis and condemned by the western powers - including extensive sanctions that aim to paralyze the Russian economy.

According to this guide, Coinbase proactively blocks access to sanctioned actors during onboarding new user registrations by comparing accounts with a list of sanctioned people and organizations. The stock exchange also said that it will discover attempts to avoid sanctions through an updated list that it uses for screening.

crypto is naturally transparent

Coinbase said that crypto naturally deterred approaches to circumvent sanctions, and pointed out Fiat currency, which is washed by traditional financial institutions than the most common way to avoid them.

It also pointed to countries like Iran to use the mailbox companies to take advantage of the financial system and bypass sanctions.

"An entire money scabbard industry has been created to hide assets in ordinary Fiat currency with these techniques," said the stock exchange.

In contrast, crypto and digital asset transactions are "comprehensible, permanent and public" and "improve" the ability of Coinbase to "recognize and scare" circumstances compared to the traditional financial system, it was said.

Coinbase has been under fire, especially from the Digital Rights Group Electronic Frontier Foundation in 2020, because the stock exchange of law enforcement authorities manages for private financial data from users.

"We believe that we can compensate for these interests by continuing to support the efforts of law enforcement and at the same time promote political framework conditions that respect the privacy of the individual," said Coinbase.

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The Coinbase contribution blocks 25,000 accounts associated with Russia for the “support” of sanctions is not financial advice.