Coinbase Explains Why Crypto Cannot Avoid Sanctions

Paul Grewal, the Chief Legal Officer of Coinbase ($COIN@US), wrote up a blog post recently that explains how cryptocurrency is not necessarily the best way to circumvent economic sanctions. In fact, he believes just the opposite. He said the public nature of crypto is easier to track and manage as opposed to “opaque ownership structures”, shell companies, and tax havens. He pointed out that the traditional financial infrastructure allows for what amounts to lawbreaking while crypto is traceable, public, and the records are permanent. This news comes as Bitcoin prices rose in Russia because it is easier to access than traditional western markets. He pointed out that these gains cannot last because bad actors would need “virtually unobtainable amounts of digital assets” to continue going around economic sanctions. Coinbase, for its part, is working hard to ensure it is not a place where those sanctions can be avoided, flagging suspicious accounts, anticipating threats, and the like. At press time, Coinbase stock was down almost 7% in early activity, trading at $165.75.