Coinbase Fined by Russian Court
A Russian court recently imposed a fine of just over $11,000 on Coinbase, a United States digital currency exchange, for allegedly refusing to localize data on Russian nationals who use the cryptocurrency exchange platform. The fine was imposed for an administrative offense under Part 8 of Art. 13.11 of the Code of Administrative Offenses of the Russian Federation. Another company, AIDA International, was likewise fined for not adhering to the new data regulations in Russia. The law, which requires foreign corporations to localize databases of Russian users, was implemented by Russia’s Federal Service for Supervision of Communications, Information Technology and Mass Media (RZN) at the end of May. More than 600 foreign corporations have reportedly complied with the requirement, including worldwide giants like Spotify, Apple, Whatsapp, Match Group, and Airbnb.
Worldwide Corporate Giants Facing Fines
The data localization law has been seen as a weapon against Western organizations by some critics of President Vladimir Putin. The law, passed in 2014, has likewise influenced other international corporations. Telegram Messenger, established by Russian-born entrepreneur Pavel Durov, and Zoom Video Communications, established by Chinese-American billionaire Eric S Yuan, have both been fined for refusal to localize data of Russian users. The Russian law applies whole lot of penalties for non-compliance, as seen in Coinbase’s recent fine of over $11,000.
Hot Take: The Impact of Russian Data Localization Laws
The imposition of fines on worldwide corporations like Coinbase, Telegram Messenger, and Zoom Video Communications signals the seriousness with which Russia is enforcing its data localization laws. As a result, international corporations operating in Russia are facing pressure to comply with these regulations or risk facing substantial fines. The impact of these laws on foreign corporations and the capacity for further conflict with the Russian Government remains a topic of interest and concern within the worldwide business community.
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