Coinbase says it will ban Russian users from its platform only if required by law ๐จ This article is 3 years old...
Coinbase says it will ban Russian users from its platform only if required by law
In light of recent belligerent sanctions against Russia, cryptocurrency exchanges remain adamant that they won't target Russian citizens.
2 min read
Updated: Mar. 6, 2022 at 10:08 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Coinbase will not be instating sanctions against its Russian users, its CEO Brian Armstrong said earlier today.
Armstrong addressed the ongoing issue of banning Russian citizens from accessing cryptocurrency exchanges, saying that Coinbase won’t be preemptively banning Russians its platform.
“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,” he said in a tweet.
Coinbase has principles but will yield to the U.S. government if it has to
However, Armstrong noted that while Coinbase won’t act of its own accord, it will impose bans and sanctions if required by the U.S. government. He said that every company registered in the U.S. has to follow the same set of laws.
“It doesn’t matter if your company handles dollars, crypto, gold, real estate, or even non-financial assets. Sanctions laws apply to all U.S. people and businesses.”
That’s why thinking that crypto businesses like Coinbase won’t follow these sanctions laws would be a mistake, he explained.
Armstrong said that the exchange already has a thorough screening process for all new users that sign up for the exchange. The exchange also blocks transactions from all IP addresses that might belong to sanctioned individuals or entities and is constantly checking its user database against global watchlists.
When it comes to the ongoing Ukraine crisis, Armstrong said that Coinbase shares the belief of the U.S. Treasury and NSC that there is currently no risk of Russian oligarchs using cryptocurrencies to avoid sanctions.
“Because it’s an open ledger, trying to sneak lots of money through crypto would be more traceable than using U.S. dollars cash, art, gold, or other assets.”
That’s why Coinbase won’t be preemptively banning Russians from using its platform. Armstrong said that the company believes everyone deserves access to basic financial services unless the law says otherwise.
That being said, he noted that Coinbaseย willย instate bans and sanctions against Russian users if required by law. If the U.S. government decided to impose a state-wide ban on U.S. companies servicing users from Russia, Coinbase would follow those laws.
9/ Sanctions are a complex issue, and the situation is changing fast, so weโll keep working with law enforcement and governments, and will take more steps as needed. We'll also of course keep working to enable crypto services for the people of Ukraine who are in need of help.
— Brian Armstrong – barmstrong.eth (@brian_armstrong) March 4, 2022
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Andjela Radmilac
Armed with a classical education and an eye for news, Andjela dove head deep into the crypto industry in 2018 after spending years covering politics.
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Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.