Many countries have imposed sanctions on Russia after it declared war on Ukraine. These are ultimately crippling the financial ecosystem of Russia, making its economy bleed more than it can take.
Visa and Master, for instance, have suspended their services. This has left entire Russia dependent on its local payment system. Those with heavy dependence on these services have now been left to wait till the time they are linked to another payment system.
25,000 Crypto Address To Be Blocked By Coinbase
The only factor that stands between Russia’s hostile elements and the evasion from these sanctions is Cryptocurrency. There is an emerging possibility that some Russians may indulge in illicit activities to evade sanctions imposed on Russia.
The best crypto exchange UAE – Coinbase has responded to the situation by announcing that it will block around 25,000 Russia-linked crypto addresses. It plans to achieve this feat by deploying blockchain analytics to identify Russian accounts.
The announcement by Coinbase has added more stars to its Coinbase review, with users praising Coinbase for supporting sanctions.
Compliance with the new rules imposed by the Government is the priority of Coinbase as a global leader cryptocurrency exchange platform.
The platform has not specified a date or time from when the blocking of Russian accounts will go into effect. It is, however, certain that every account linked to Russian individuals or entities will remain under the scanner.
To justify the move, Coinbase stated the instance of 2020 when it had blocked 1,200 Russian accounts after sanctions were imposed on a specific Russian national.
Paul Grewal, the Chief Legal Officer at Coinbase, appreciated the efforts of the Government. He said that sanctions play a very important role in deterring unlawful aggression and promoting national security.
Crypto wallets are characterized under anonymity, and they are known to maintain distance from the traditional payment system. They can still be blocked as transactions remain permanent, traceable, and public, making it easier to grab illicit accounts.
Once Crypto wallets are blocked by an exchange platform, Coinbase, in this case, users are unable to buy and/sell their digital holdings. What makes Crypto the right choice for illicit activities is its property that naturally deters approaches to evade sanctions.
Earlier, US Lawmakers had questioned crypto exchange platforms on their stance on the matter. They had also written a letter to Janet Yellen, Treasury Secretary, urging her to outline a plan for enforcing compliance.
While Coinbase has announced plans to block Russian Crypto wallets, some have said that that was not necessary as crypto was too small for Russia. Changpeng Zhao, the Founder of Binance, echoed this statement and added that the adoption level was too low.
Many have also pointed out Ukraine’s efforts to raise donations through Cryptocurrency. The figures as of the end of the last week stood at $54 million.
Russia currently stands isolated from the world in terms of financial infrastructure. Many major operators have suspended their services, leaving Russian cardholders dependent on its National Payment Card System.