The Importance of Preventing Crypto from Thriving Offshore, According to Coinbase
Coinbase, the largest US-based crypto exchange, is advocating for preventing the flourishing of cryptocurrencies in offshore jurisdictions. In a recent blog post, the company asserts that allowing digital assets to thrive in locations where they are not subject to US laws only enables bad actors to use them for illicit purposes.
Coinbase emphasizes its commitment to maintaining a strong compliance program that includes KYC checks, sanctions screening, and suspicious activity reporting. The exchange also highlights its partnerships with law enforcement agencies and the use of blockchain analytics technology to trace and prevent terrorist financing. Coinbase argues that these measures make it crucial to prevent crypto from thriving offshore.
Hamas Fundraising Campaign Raises Concerns
Coinbase’s statement comes in light of reports that Hamas, the Palestinian militant group responsible for recent attacks on Israel, initiated a fundraising campaign asking for cryptocurrency deposits. The group allegedly utilized offshore entities not subject to US laws and regulations related to anti-money laundering and sanctions, making it easier for them to engage in such activities.
Israeli authorities have closed more than 100 Hamas-linked accounts on Binance since the conflict began and are investigating an additional 200 crypto accounts held on the leading exchange.
Protecting Against Financial Crime and Terrorism
According to Coinbase, it is essential for the United States to maintain its position as a global leader in combating financial crime and terrorism. The company believes that by establishing clear regulations, crypto can be kept within the US and other regulated jurisdictions, ensuring compliance with anti-money laundering rules and sanctions.
Hot Take: Coinbase’s Stance on Preventing Offshore Crypto Thriving
Coinbase’s strong stance against allowing cryptocurrencies to flourish offshore reflects its commitment to preventing illicit activity in the digital asset space. By advocating for clear regulations and emphasizing compliance measures, the exchange aims to protect against financial crime and terrorism. With recent reports of Hamas fundraising campaigns using cryptocurrencies, Coinbase’s call to prevent offshore crypto activities gains significance in safeguarding the integrity of the industry.
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