Coinbase Cracks Down on Over 25,000 Russian Wallets

In Summary
  • Coinbase revealed on Monday that it had blocked more than 25,000 Russian wallets linked with illicit activities. 
  • Coinbase’s action comes after an initial refusal to place a blanket ban on Russian wallets. 

Coinbase Acts on Sanctions

The major exchange published a detailed official statement of its most recent crackdown on more than 25,000 Coinbase wallets. Coinbase claims that these wallets mostly belonged to Russians linked with several illicit activities. The company came to this conclusion via its own private “proactive investigations”.

Coinbase explained that part of its motivation in the recent sweep of accounts is its company’s policy to maintain integrity. As a result, it was ready to take action against individuals who were already sanctioned by the government and who could seek crypto to escape those sanctions. 

Sanctions play a vital role in promoting national security and deterring unlawful aggression,” reads the official blog’s statement, “and Coinbase fully supports these efforts by government authorities. Sanctions are serious interventions, and governments are best placed to decide when, where, and how to apply them.” 

The business also explained it had developed clear programs to play its part in the punitive action against sanctioned criminal actors. Asides from cracking down on known actors, Coinbase claimed it was developing technology to identify possible sanction evaders. Additionally, the company is on high alert, in anticipation of similar anomalies noticed in recently blocked accounts.

Coinbase Turns Back on Initial Decision?

Last week, the company refused a blanket ban on Russian wallets, following significant pressure to do so. Its decision was echoed by major exchanges Binance and Kraken. Coinbase cited last week that it believes “everyone deserves access to basic financial services unless the law says otherwise.” 

In a series of tweets from CEO Brian Armstrong, the co-founder noted that the company would not seek to ban Russian IPs or accounts. Armstrong cited Russia’s inability to fully employ crypto to evade sanctions as a key part of its decision. Since crypto transactions are open ledgers, and traceable, making multimillion transactions in crypto would not be wise on Russia’s part.

Also, a last resort to privacy coins like Monero would be underwhelming as well, considering XMR’s entire marketcap is hardly up to $3 billion. However, the CEO noted that, ultimately, the company would be required to follow the law like other US outfits. 

Other major exchanges, such as Binance and Kraken echoed Coinbase’s sentiments last week. Although, some South Korean crypto exchanges were reported to have blocked the access of Russian users to their platforms. 

The post Coinbase Cracks Down on Over 25,000 Russian Wallets appeared first on Crypto Adventure.

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