Crypto tech to global sanctions compliance

According to Grewal, the most sought-after method of evading sanctions is laundering fiat currency through traditional financial institutions. Coinbase, a cryptocurrency exchange based in the United States, has proposed using cryptocurrencies to help ensure compliance with economic sanctions. This recommendation based on the ease with which traditional financial infrastructures enable the laundering and evasion of fiat currencies.

Coinbase’s chief legal officer Paul Grewal, discusses the growing number of global sanctions imposed amid the Russia-Ukraine conflict. The cryptocurrency exchange backed the government’s decision to impose sanctions on individuals and territories, emphasizing the importance of promoting national security and deterring unlawful aggression.

Furthermore, prominent crypto lawyer Jake Chervinsky emphasized why governments cannot use cryptocurrencies to avoid sanctions. Coinbase has taken proactive measures to implement a global sanction program, such as blocking access to flagged entities during the signup process, detecting evasion attempts, and anticipating threats using a sophisticated blockchain analytics program.

Furthermore, other crypto businesses have begun to discourage further the use of cryptocurrencies based on the sanctions recommended by the US government. For example, Satoshi Labs, a Prague-based crypto wallet provider, has announced that it will no longer ship crypto wallets to Russia.

Coincidentally, the hammer price for the infamous Beeple NFT auction, which closed in March 2021, is around $70 million for the Basquiat. Christie’s auction house handled the sale, which sparked additional cryptocurrency-related auction house activity.

In November 2021, rival auctioneers Sotheby’s accepted real-time ETH bids for a Banksy auction. Sotheby’s partnered with Coinbase in May of the same year to manage Bitcoin and Ether auctions before taking over cryptocurrency payments in-house.

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