Coinbase CEO Says Exchange Will Not Ban Russian Users Unless Compelled by Law

Coinbase Chief Executive Officer (CEO), Brian Armstrong has lent his voice to the sweeping ban on Russian cryptocurrency users, following the government’s invasion of Ukraine last week. At the moment, a number of American fintech companies, particularly Visa and Mastercard have banned users from Russia from utilizing their payment networks, a move cryptocurrency exchanges like Coinbase are yet to make.

In a Twitter thread shared by Armstrong, he believes banning users from Russia from using crypto is perhaps a disservice to the citizens who have no hand in how their government is handling the diplomatic ties with Ukraine. Banning these sets of people, he said will hurt them now that the Ruble is tanking in value, however, he noted the trading platform would be forced to comply if the government enacts a law that mandates this.

“In addition, we are not preemptively banning all Russians from using Coinbase. We believe everyone deserves access to basic financial services unless the law says otherwise,” Armstrong said in the tweet, adding that “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. That said, if the US government decides to impose a ban, we will of course follow those laws.”

Coinbase CEO on Using Crypto to Evade Sanctions

An equally prominent discourse in the business world is how to prevent Russians from using cryptocurrencies as a tool to bypass the sanctions that are being imposed on them by governments around the world.

The Coinbase CEO noted that bypassing sanctions will not be an easy task when done through the blockchain as transactions are openly available. Infact, he noted that fiat currencies will be an easier way to bypass these sanctions when several factors are considered. 

“That being said, 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 U.S. dollars cash, art, gold, or other assets,” he said.

Armstrong reassured that Coinbase screens the users it allows on its platforms and generally prevents sanctioned IP addresses from restricted regions to come onboard.