Crypto exchange platform Coinbase announced access restrictions on more than 25,000 wallets belonging to Russian owners believed to be involved in illegal activities.
It is understood that the sanctions were taken after an investigation was conducted and it received support from the United States (US) government.
Coinbase has also reviewed account applications from several blocked entities and individuals, including those in the US, the United Kingdom (UK), the European Union (EU), the United Nations, Singapore, Canada, and Japan.
Does this mean Coinbase has made a u-turn after claiming it will not be involved with the implementation of access restrictions in Russia, unless the U.S. government issues such a directive?
The answer is, NO. Coinbase will in no way block Russian residents from accessing their platform unless there are some entities that need to be blocked, based on orders from U.S. authorities.
At the same time, Coinbase CEO Brian Armstrong took this opportunity to explain the issue of Russia’s use of cryptocurrencies to avoid financial services restrictions such as those implemented by Mastercard, Visa, and PayPal, including 7 Russian banks ’disbursements from SWIFT.
"We do not expect the potential for the Russian government to use crypto to circumvent sanctions. Crypto is an open ledger; and attempts to deposit large sums of money through crypto are easier to track than using cash, gold, or other assets. ”
