(Coinbase) US crypto exchange Coinbase has proposed the use of blockchain and crypto technologies to detect and prevent evasion of economic sanctions.
The crypto exchange says transactions involving digital assets are inherently traceable, public, and permanent, features that the authorities can use to detect and prevent evasion.
Coinbase’s Chief Legal Officer Paul Grewal says that bad actors who want to evade sanctions would require huge amounts of “virtually unobtainable” digital assets.
Coinbase opines that the countries can launder fiat currency through the traditional financial system to evade sanctions. The exchange gives the exchange of transactions through shell entities and tax havens as some of the loopholes.
The recommendation by Coinbase comes amid growing sanctions in the wake of the Russian invasion of Ukraine. The crypto exchange has supported the sanctions, citing the need to enhance national security and prevent unlawful aggression.
Coinbase has played a role in enhancing compliance to global sanctions programs by blocking flagged entities in the sign-up process, detecting and deterring evasion attempts through the use of complex blockchain analytics.
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