"Can Cryptocurrency Help Russia Evade Economic Sanctions?" Listen to what the CEO of Coinbase has to say.

The conflict between Russia and Ukraine has been ongoing for nearly a week, with many countries imposing economic sanctions on Russia. However, can decentralized blockchain technology offer Russia a lifeline amidst various restrictions? Let's take a look at the thoughts of Coinbase CEO Brian Armstrong.

Cryptocurrency and Economic Sanctions

Every US company must comply with the law, regardless of whether your company deals in US dollars, cryptocurrencies, gold, real estate, or even non-financial assets. Sanctions laws apply to all US individuals and businesses.

Therefore, it is a mistake to think that cryptocurrency businesses like Coinbase will not comply with the law. We certainly will. That's why we screen individuals registering for our services against global watchlists and block IP addresses of sanctioned individuals or entities from transacting, just like any other regulated financial services company.

Based on this, we believe that the risk of Russian leaders using cryptocurrencies to evade sanctions is not high, as it is a public ledger, making it easier to trace attempts to siphon off large sums of money through cryptocurrencies than using US dollars, cash, art, gold, or other assets.

This is not just my opinion; experts from the US Department of the Treasury and the National Security Council (NSC) also agree.

Furthermore, we will not proactively ban all Russians from using Coinbase. Unless otherwise required by law, we believe everyone should have access to basic financial services.

Due to the severe devaluation of their fiat currency, the Ruble, some Russians are using cryptocurrencies to sustain their daily lives. Many Russians oppose their government's actions but are also affected by these sanctions. However, if the US government decides to impose restrictions, we will certainly comply with these laws.

Sanctions are a complex issue, and the situation is constantly evolving. We will continue to work with law enforcement and government agencies, take further actions as needed, and continue our efforts to provide cryptocurrency services to the Ukrainian people in need.