Coinbase CEO Brian Armstrong indicated that the exchange would comply with US requirements if restrictions were to be imposed, but he believes the crypto still serves as a lifeline for some Russian users.
In Tweet On Friday, Armstrong explained why Coinbase would not previously ban all Russian users from its platform:
“We believe that everyone is entitled to access to basic financial services, unless the law states otherwise,” Armstrong said. “Some ordinary Russians are now using crypto as a lifeline because their currency has collapsed. Many of them probably oppose what their country is doing, and the sanctions will hurt them too,” he argued. Gave.
He also added that “some ordinary Russians are now using crypto as a lifeline because their currency has collapsed.” Speaking to the US government about any potential restrictions exchanges like Coinbase could require, Armstrong said the platform would “definitely comply with those laws.”
Binance and Kraken will also comply
Coinbase’s approach to US sanctions also coincides with that of others, including Binance and Kraken, which both agree that although they will not ban all Russian users, they will still comply with any specific sanctions requirements that may arise. Huh.
As it currently stands, Coinbase is currently blocking transactions from IP addresses that may belong to approved individuals or entities.
The US Treasury introduced new rules that specifically address illegal Russian activity, called the ‘Russian Harmful Foreign Activity Sanctions Regulations’.
Biden launches ‘Kleptocapture’ task force
In the wake of economic sanctions against Russia in response to its invasion of Ukraine, many have called for crypto exchanges to ban Russian users, including President Joe Biden and Ukraine’s Deputy Prime Minister and Minister of Digital Transformation Mykhailo Fedorov.
However, there are other crypto executives such as Binance CEO Changpeng Zhao, who believe that blocking all Russian users would be “immoral”.
Earlier this week, US President Joe Biden and his administration together with the US Department of Justice (DOJ) launched the ‘Kleptocapture’ task force – an interagency task force to implement ongoing sweeping sanctions, export sanctions and economic countermeasures. which the United States and its allies have imposed in response to Russia’s unprovoked military invasion of Ukraine.
In addition to investigating and prosecuting sanctions violations, the task force will also target the use of cryptocurrencies for sanctions evasion or money laundering. This is Armstrong’s belief that the use of cryptocurrencies by Russian oligarchs to evade sanctions does not pose a high risk:
,[b]Because this is an open account, trying to launder a lot of money via crypto would be more traceable than using US dollar cash, art, gold or other assets,” Armstrong said.
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