Russian Oligarchs Unlikely to Use Crypto to Dodge Sanctions - Coinbase CEO
The heads of some of the world’s biggest centralized crypto exchanges (CEXes) have hit back against critics who claim crypto could be used by Russian oligarchs attempting to evade Western sanctions. However, the exchanges will abide by the law in case there's a ban on all Russian users.
On Twitter, Coinbase CEO Brian Armstrong wrote that “it would be a mistake to think crypto businesses like Coinbase won’t follow the law.”
“This is why we screen people who sign up for our services against global watchlists and block transactions from IP addresses that might belong to sanctioned individuals or entities, just like any other regulated financial services business,” he said.
But, the CEO added, oligarchs were not likely to use a large CEX to move their funds around. He wrote:
“We don’t think there’s a high risk of Russian oligarchs using crypto to avoid sanctions. Because it is an open ledger, trying to sneak lots of money through crypto would be more traceable than using United States dollars cash, art, gold, or other assets.”
However, Armstrong stressed that if the US government decides to impose a ban on ordinary Russians, the exchange "will of course follow those laws."
"Some ordinary Russians are using crypto as a lifeline now that their currency has collapsed. Many of them likely oppose what their country is doing, and a ban would hurt them, too," the CEO said, adding that the company will "keep working to enable crypto services for the people of Ukraine who are in need of help."
The head of Coinbase rival Binance, Changpeng “CZ” Zhao, affirmed comments made earlier this week by the Binance Chief Communications Officer Patrick Hilmann, who claimed that the exchange would abide by sanctions, but “to unilaterally [...] cut
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