Coinbase blocks 25 000 Russian crypto wallets because of the war that Russia started against Ukraine.
The trading platform Coinbase announced blocking 25 000 cryptocurrency addresses linked to Russian people or entities because of war in Ukraine.
The move shows Coinbase’s effort to defend itself against claims that Russia could avoid sanctions with crypto, The Verge reports.
Coinbase chief legal officer Paul Grewal mentioned the new rules imposed amid the ongoing Russian invasion of Ukraine. The platform will use “sophisticated blockchain analytics” to identify accounts that could be indirectly linked to banned users. Coinbase blocks 25 000 Russian crypto wallets as a result of such analysis already, saying they are “related to Russian individuals or entities engaged in illicit activity”.
“Sanctions play a vital role in promoting national security and deterring unlawful aggression, and Coinbase fully supports these efforts by government authorities”, – Grewal outlined.
Despite the crypto wallets can be anonymous, Coinbase chief legal officer explained that transactions are “traceable, permanent, and public” for cracking down on illicit accounts and activities.
After invading Ukraine Russia became isolated from the traditional world financial system. Over the last weekend, Visa and Mastercard suspended their operations in the country. This means Russian cardholders can rely only on Russia’s National Payment Card System called Mir.
Meanwhile, Ukrainian Minister of Digital Transformation Mikhail Fedorov said that the country already received $50 million in crypto to support the army and expects to receive twice more. Gavin Wood, founder of Polkadot, is the biggest crypto friend of Ukraine to this moment with his impressive $5.8 million donation made in DOT.