Coinbase has decided to follow Binance and Kraken in refusing to impose a blanket ban on Russian users. Coinbase CEO Brian Armstrong indicated an hour ago that the company is not considering removing all Russian users from its platform.
Following allegations that Russia may utilise cryptocurrency to circumvent US sanctions, crypto exchanges in the United States have come under fire from politicians.
8/ Some ordinary Russians are using crypto as a lifeline now that their currency has collapsed. Many of them likely oppose what their country is doing, and a ban would hurt them, too. That said, if the US government decides to impose a ban, we will of course follow those laws.
— Brian Armstrong – barmstrong.eth (@brian_armstrong) March 4, 2022
The Coinbase CEO, on the other hand, takes a careful approach in order to avoid upsetting US regulators. He goes on to say that regardless of the asset class, whether gold, equities, or cryptocurrency, every U.S. corporation must follow the law of the plan.
As a result, Coinbase will also abide by the law! Instead of a blanket prohibition, Coinbase will “block transactions from IP addresses that may belong to sanctioned individuals or entities, just like any other regulated financial services business,” according to the statement.
Russian oligarchs are unlikely to use cryptocurrency to circumvent sanctions.
According to the CEO of Coinbase, there is little chance of Russian oligarchs utilising cryptocurrency to circumvent sanctions. He claims that because crypto is an open ledger, it is more traceable than currency, art, gold, or other goods. He goes on to say that even the US Treasury and the National Security Council concur on this.
“Sanctions are a difficult subject, and the situation is changing fast,” Armstrong writes in his final tweet. “We’ll remain engaging with law enforcement and governments, and will take more steps as needed.” Of course, we’ll continue to work to make crypto services available to those in need in Ukraine.”
The storey that Russia is utilising crypto to get around sanctions isn’t totally accurate. NFT marketplaces like as OpenSea, on the other hand, have already begun limiting access to users from sanctioned zones.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.