Coinbase informed that it has been blocking sanctioned entities and individuals since its launch. Paul Grewal, CFO of Coinbase said in a blog post that his company has been supporting sanctions on the Russian entities and individuals even before the current sanctions. It does not allow them to use its platform for transactions.
The blog post says many governments across the world in last few weeks have imposed several sanctions on Russian territories and individuals after Russia invaded Ukraine. These sanctions have a vital role to play in ensuring national security and preventing unlawful aggression. According to the blog post, Coinbase supports all sanction efforts implemented by the government authorities.
Coinbase has a three-layer plan designed to meet these requirements. Layer 1 blocks access of Russian users to its platform. All applicants are first verified with the help of the list of people and entities prepared by the US, UK, Canada, the European Union, Japan and Singapore, among others. A person or entity sanctioned by any one of these countries is not allowed to participate in the transactions at Coinbase platform.
Its level 2 is designed to detect any attempt to evade this barrier. It updates the list of global sanctions regularly. Its layer 3 is capable of anticipating threats. Its blockchain analytics plan identifies accounts belonging to the sanctioned individuals but not associated with Coinbase. These accounts are also blocked.
Grewal explained in the blog post how Coinbase meets all legal requirements. Crypto assets are permanent, traceable and public. These assets can be sanctioned faster than fiat money. He claimed that Coinbase currently blocks more than 25,000 addresses belonging to the Russian entities and individuals.