Coinbase blocks Russian activities linked to illegal dealings | Invezz

Coinbase, one of the largest cryptocurrency exchange platforms globally, has announced blocking 25,000 addresses belonging to Russian users. The exchange noted that these addresses were linked to illicit activities.

Coinbase blocks 25,000 Russian addresses

Coinbase has emerged as a leading US-based crypto exchange. Coinbase was the first exchange to go public through a direct listing on NASDAQ in 2021. The company’s CEO, Brian Armstrong, had previously said that the exchange would not impose a unilateral ban on all Russian users.

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In an official blog post, Coinbase has now stated that it has blocked

Over 25,000 addresses related to Russian individuals or entities we believe to be engaging in illicit activity, many of which we have identified through our own protective investigations.

The exchange has also stated that it has shared the blocked addresses with the US government, noting that this will “support sanctions enforcement.” In the blog post, Coinbase stressed that it would comply with the sanctions imposed on Russian individuals and entities by the United States.

“Coinbase is committed to building a safe and responsible financial system that promotes economic freedom around the world. WE strive to be the most trusted platform for buying, selling, and exchanging digital assets, helping everyday people to participate in the crypto economy,” the announcement said.

The use of crypto to avoid sanctions

The recent sanctions imposed against Russia have raised questions on whether cryptocurrencies can be used to avoid the sanctions imposed against Russia following the invasion of Ukraine. Various regulators have called for closer supervision of the crypto sector to ensure that this does not happen.

Brian Armstrong, the CEO of Coinbase, has noted a slight chance that crypto could be used to avoid sanctions. He noted that the blockchain network was an open ledger; hence trying to hide money using cryptocurrencies would be more traceable than using cash, gold, art or other assets.

Armstrong said that while the exchange would comply with the sanctions, it would not ban all Russian users. This statement has also been echoed by other exchanges such as Binance and Kraken, which have also refused to ban all Russian users as previously requested by Ukraine.