Tuesday, October 4, 2022

Coinbase Will Not Ban Russian Cryptocurrency Users Unless Required by Law

After several sanctions from major financial service providers all over the world including Mastercard, Russians have taken to crypto assets for payments and other monetary obligations they need to fulfill. Based on a Twitter post by Coinbase CEO Brian Armstrong, placing a ban on crypto would hurt the citizens as some of them are not in agreement with the government’s approach.

Major crypto exchanges have refused to sanction Russians by a ban on access to crypto. The exchanges are not satisfied with the global move to deny Russians of finances, as many citizens would need to keep up now that many financial organizations have blocked them out.

However, lawmakers have a contrary opinion, saying Russians will not yield to world appeal since they can lessen the burden of the ban by making use of crypto. Brian has maintained his stance on the issue and is not ready to place a crypto sanction until the United States law mandates him to.

According to him, Coinbase, like all financial providers, would still be on the lookout for unauthorized IP addresses that belong to sanctioned individuals or organizations and would block them if any form of irregularities is noticed.

For him, the cryptosphere, although filled with high risks, is not very vulnerable to Russia’s terrorism. As an open ledger, locating criminal activities is quite easier than making use of physical banking styles. Unnecessarily huge fund transfers are easily traceable on the blockchain.

Coinbase is not standing alone on this decision, Kraken and Binance had also earlier refrained from joining other financial service providers in the Russian ban. They have refused to place the politicians brewing the war in the same position as the ordinary citizen.

No United States Law on Crypto Russia Ban Yet

The war is not predicted to last forever, therefore, situations are also changing fast. Brian has guaranteed that the exchange will work in tandem with government enforcement agencies and financial regulators. Whenever the United States laws state that a crypto ban is carried out, however, for now, no such law has been enacted yet.

In the heat of the war, Ukraine has not stopped accepting crypto donations from individuals and organizations, even Non-Governmental Organizations (NGOs). As of Monday, the donations had reached over $54 million and with the Coinbase Chief affirming no plans to ban crypto services to both Ukrainians and Russians who need them, more of these donations is bound to be channeled through the platform in the coming days.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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