Coinbase says it is now blocking 25,000 bitcoin addresses associated with Russian individuals or businesses, in response to fears that Russia could circumvent sanctions via cryptocurrencies. Chief legal officer Paul Grewal detailed how the financial exchange is complying with new guidelines implemented in response to Ukraine’s ongoing invasion in a blog post published yesterday. This involves utilizing “advanced blockchain analytics” to locate accounts that are associated with banned users in an indirect manner.
Coinbase stated that the 25,000 suspended accounts were “associated with Russian persons or groups that we suspect are involved in criminal behavior.” It could not explain when they were prohibited or how many of the restrictions were related to current sanctions – for example, Coinbase highlighted a 2020 sanction against a specific Russian individual with 1,200 potentially associated accounts in one example.
US politicians have questioned whether cryptocurrency firms are abiding by Russia’s sanctions. Four senators, including Elizabeth Warren (D-MA), wrote to Treasury Secretary Janet Yellen last week demanding her to clarify measures for ensuring compliance.
Russia is being progressively cut off from the rest of the world’s non-crypto financial system. Among other things, Visa and Mastercard ceased operations in the country over the weekend, leaving cardholders in Russia reliant on the country’s National Payment Card System.
