After the world’s leading crypto exchanges Binance and Kraken rejected a comprehensive request to ban Russian users, Coinbase announced that it would not comply with these demands. Coinbase CEO Brian Armstrong confirmed that they are not considering banning all Russian users from their platform.
Crypto exchanges in the US have come under pressure from senators after reports that Russia could use crypto to curb US sanctions.
“We will not impose bans that prevent all Russian users from using Coinbase. We believe that everyone has the right to access essential financial services, unless the law provides otherwise. Some ordinary Russian users, because their currency has lost value. cryptocurrencysees them as a lifeline. Many are likely to oppose what their country is doing and a possible ban would do them more harm.”
However, the CEO of Coinbase is taking a cautious approach so as not to harm US regulators. He adds that every U.S. company, regardless of asset class, whether gold, stocks or crypto, must comply with the laws of the scheme.
So Coinbase will also comply with the law. However, instead of a sweeping ban, Coinbase will “block transactions from IP addresses that may belong to sanctioned individuals or entities, just like any other regulated financial services business.”
CEO of Coinbase Brian ArmstrongNoting that there is little risk of Russian Oligarchs using crypto to evade sanctions. He reiterated that crypto is an open ledger that makes it more traceable than using US dollars cash, art, gold or other assets. He added that even the US Treasury and the NSC agree on this issue.
In his latest tweet, Armstrong said: “Sanctions are a complex issue and the situation is changing rapidly, so we will continue to work with governments and take further action as needed. Of course, we will continue to work to enable crypto services for the Ukrainian people who need help.”
A recent report shows that the claim that Russia is using crypto to evade sanctions is not entirely true. On the other hand, NFT marketplaces such as OpenSea have already begun to limit access to users in areas with sanctions.