Coinbase has advocated leveraging bitcoin and blockchain technologies to promote economic sanctions compliance. The plan includes a request to emphasize the ease of laundering and sanction evasion that traditional banking infrastructure may enable.
Sanctions are diplomatic initiatives aimed at punishing governments that break specific regulations. Governments, companies, and individuals can all face sanctions. Businesses that do business in the United States need to make sure they follow all of the rules set by the US government. If they don’t, they could be fined or even go to prison.
What does Coinbase propose?
According to Coinbase, cryptocurrency and blockchain technology can provide a transparent and auditable mechanism for tracking transactions, aiding firms in remaining sanctions-compliant. According to the exchange, crypto technology has the potential to lessen reliance on traditional financial mechanisms, which, according to the exchange, promote sanction evasion.
Along with underlining the ease of money laundering and sanction evasion caused by traditional banking infrastructures, the plan also recommends the usage of blockchain technologies. This idea represents a substantial advancement in the use of cryptocurrencies and blockchain technology for compliance. Economic sanctions compliance is crucial for organizations operating in the United States, and cryptocurrencies and blockchain technology provide various benefits in promoting compliance.
25,000 Russian users blocked
Previously, some large cryptocurrency exchanges, including Coinbase, rejected Ukraine’s and the US government’s requests to outright ban Russian users from their platforms but agreed to block any individuals reported.
The exchange said today in a post that it had blocked 25,000 Russian addresses that were allegedly involved in unlawful activity. Coinbase has been very proactive in combating illicit conduct, and this latest measure demonstrates its dedication to offering a secure platform while complying with US sanctions.
Highlights
- Coinbase recommends employing cryptocurrency technology to assist in complying with foreign sanctions.
- According to the firm, cryptocurrencies can aid in sanction compliance.
- 25,000 Russian addresses have been blocked by Coinbase.
***
