The Coinbase cryptocurrency trading platform has blocked 25,000 digital wallet addresses that are directly related to Russia, in the midst of the war that is raging in Europe, and whose shock wave is being felt throughout the world.
The platform stated in a statement that the addresses were related to Russian individuals or entities believed to have engaged in illicit activity . The addresses were blocked for fear that the cryptocurrencies could be used to carry out criminal activities related, mainly, to drug and arms trafficking.
Avoid illicit activities
Coinbase Chief Legal Officer Paul Grewal made the announcement via the company’s official blog. In the statement he outlined how the crypto exchange was compliant with new rules imposed due to Russia ‘s invasion of Ukraine . This means that sanctioned individuals will not have access to their digital assets, and the company has committed to extensive analysis of blockchain technology to identify accounts indirectly linked to banned users.
“Coinbase blocks more than 25,000 addresses related to Russian individuals or entities we believe to be involved in illicit activity, many of which we have identified through our own proactive investigations,” the company’s statement read. with the government to further support the implementation of sanctions, as we believe that they play a vital role in promoting national security and deterring illegal aggression, and in this regard Coinbase fully supports the efforts of government authorities.”
The US government had asked crypto platforms to help ensure Russian oligarchs couldn’t use virtual currencies to evade capital and engage in illegal activities. But many are resisting pressure from both the Ukrainian government and US and European politicians to go further and ban all Russian users, amid concerns that the country’s civilian population may be using cryptocurrency as a lifeline after that the value of the ruble has sunk to record lows.
The civilian population must be taken into account.
Some argue that shutting down Coinbase’s operations in Russia would only harm ordinary citizens, which is why the company has made it clear that it is not preemptively banning all Russians from using its services, in fact it has made it clear that all users deserve access to services. basic financial information unless the law says otherwise.
However, Russia is increasingly isolating itself from the world’s largest non-crypto financial systems . Visa, Mastercard and American Express have suspended all their operations in the country, ensuring that cards issued abroad would no longer work in stores or ATMs on Russian territory.
But Russia has tried to play down the impact of the suspension, suggesting that cards issued by Russian banks would continue to work within Russia, as transactions could be carried out by a national operator.
