Coinbase proposes using crypto tech to help comply with international sanctions.The firm says cryptocurrency can help promote compliance with sanctions.Coinbase blocks 25,000 Russian addresses
Coinbase has proposed using cryptocurrency and blockchain technology to promote compliance with economic sanctions. The proposal comes with a recommendation to highlight the ease of laundering and sanction evasion that may be made possible by traditional financial infrastructure.
Sanctions are diplomatic efforts aimed at punishing any countries that violate certain established rules. These sanctions can be placed on governments, organizations, or individuals. Compliance with US sanctions is critical for businesses operating in the US, especially, as violating them can result in heavy fines or even criminal penalties.
What is Coinbase proposing?
As per Coinbase, cryptocurrency and blockchain technology can provide a transparent and auditable system for tracking transactions, which can help businesses stay compliant with sanctions. Crypto technology can help reduce the reliance on traditional financial methods, which the exchange says facilitate sanction evasion.
The proposal, along with emphasizing the ease of money laundering and sanction evasion caused by traditional financial infrastructures, comes with a recommendation to adopt blockchain technologies.
This proposal is a significant step forward in using cryptocurrencies and blockchain technology for compliance. It will be interesting to see how it is implemented and whether it proves to be successful. Compliance with economic sanctions is critical for businesses operating in the US, and cryptocurrencies and blockchain technology offer several benefits for promoting compliance.
25,000 Russian users blocked
Previously, several leading crypto exchanges, including Coinbase, dismissed the pleas from Ukraine and US government to outrightly ban Russian users from their platform but pledged to block any users flagged.
In the post today, the exchange announced it blocked 25,000 Russian addresses which were reportedly involved in illegal activities. Coinbase has been very proactive in combating criminal activity, and this latest move underscores its commitment to providing a secure platform whilst abiding by the US sanction.