Cryptocurrency trading platform Coinbase has blocked over 25,000 digital wallets linked to “Russian entities or individuals” days after their CEO condemned a blanket ban on Russian civilians in light of the Russian invasion of Ukraine.
In a blog post, Coinbase's chief legal officer Paul Grewal confirmed this move by the platform and claimed the business took action against "digital wallets linked to “Russian entities or individuals”
Grewal further added that Coinbase uses crypto technology to “promote sanctions compliance” and they are working towards “building trust in crypto industry”. He also clarified that the accounts which were identified to be involved in illicit activity were reported to the US government.
It is noteworthy to mention that Coinbase CEO Brian Armstrong has spoken out against calls to ban Russians from using the cryptocurrency exchange entirely, claiming that the exchange is merely a tool as the ruble's value plummets as a result of the sanctions.
The effect of sanctions is observable on the Russian Rouble which has tanked to its 12-month low value against the US dollar. Furthermore, more and more Russians are swapping their Rouble for Bitcoin and USDT Tether as a hedge against the inflation caused by war. The volume of peer-to-peer Bitcoin exchanges in Russia has gone up by three times.
Coinbase’s move comes days after South Korean Exchanges like Gopax, Upbit, Bithumb, Coinone, and Korbit have placed restrictions on Russian addresses in line with the sanctions imposed by their government.
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today