Coinbase CEO Brian Armstrong believes some Russians are using cryptocurrencies as a way to keep going after their home currency the ruble crashed.
At the same time, the crypto exchange’s boss said late Thursday that he doesn’t see much of a risk that Russian oligarchs are using digital assets to get around Western sanctions.
“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,” he said in a series of tweets.
Armstrong said Coinbase would not pre-emptively block all Russians from accessing its platform. But if US authorities decide to impose a ban, it will comply, as it is a regulated financial services business and must do so, he added.
“We believe everyone deserves access to basic financial services unless the law says otherwise,” he said.
But trading involving the ruble and cryptocurrencies has not increased since Russia attacked, according to Chainalysis figures. In fact, volume actually fell from $70.7 million Thursday last week to $34.1 million this Thursday, the data showed.
“That being said, we don’t think there’s a high risk of Russian oligarchs using crypto to avoid sanctions,” he said.
“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.”Publicly viewable blockchains allow anyone to track the movement of cryptocurrencies such as bitcoin and ethereum. Any significant transactions would be caught, making it more traceable than assets like cash or gold.
Armstrong said Coinbase would keep working with the authorities and take any further steps required around sanctions.
Large crypto exchange Binance is blocking access to Russian account holders targeted by international sanctions, but it also will not keep all Russians from accessing its platform, CEO Changpeng Zhao said Wednesday.