Coinbase proposes crypto tech to promote global sanctions compliance
The United States-based crypto exchange Coinbase has proposed the use of cryptocurrencies to help ensure compliance with economic sanctions. The recommendation comes along with highlighting the ease of laundering and sanction evasion of fiat currencies made possible by traditional financial infrastructures.
Written by Coinbase’s Chief Legal Officer Paul Grewal, the blog talks about the growing range of global sanctions put forth amid the Russia-Ukraine conflict. The crypto exchange supported the government’s decision to impose sanctions on individuals and territories, highlighting its importance in “promoting national security and deterring unlawful aggression.”
https://t.co/h08YXYgAoM Sanctions play a vital role in promoting national security and deterring unlawful aggression, and @coinbase fully supports these efforts by government authorities. They are best placed to decide when, where, and how to apply them.
Grewal points out that, despite the sanctions put forth by governments over the years, laundering of fiat currency through traditional financial institutions remains the most sought-after method for sanction evasion:
On the other hand, Grewal argued that digital asset transactions are inherently public, traceable and permanent — an important feature that can be leveraged by governing authorities to detect and deter evasion.
2/ Every US company has to follow the law - it doesn't matter if your company handles dollars, crypto, gold, real estate or even non financial assets. Sanctions laws apply to all US people and businesses.
In addition, prominent crypto lawyer Jake Chervinsky also highlighted why it is impossible for governments to make use of cryptocurrencies to evade sanctions. Acknowledging the same, Grewal stated
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