The largest US-based crypto exchange wants to prevent crypto from flourishing in offshore jurisdictions.
In a new blog postCoinbase says allowing cryptocurrencies to flourish abroad, where entities are not subject to U.S. laws, will only allow bad actors to easily use digital assets for illegal purposes.
“We maintain a robust compliance program, which includes know your customer (KYC) checks, sanctions screening, suspicious activity reporting and strong law enforcement partnerships, to prevent and detect illegal activity on our platform. Furthermore, blockchain analytics technology allows us to detect, report and even prevent terrorist financing. That is why it is crucial to prevent crypto from flourishing offshore.”
The statement comes amid reports that the Palestinian militant group Hamas, which carried out devastating attacks on Israel on October 7, launched a fundraising campaign on social networks and asked the public to deposit cryptocurrencies into their accounts.
“The reports of Hamas financing linked to digital assets are linked to offshore entities that are not subject to US laws, including anti-money laundering and sanctions regulations, making it easier for them to engage in such behavior.”
Coinbase says the US must maintain its position as a global leader in the fight against financial crime and terrorism.
“By creating clear rules of the road, we keep crypto in the United States and other regulated jurisdictions, ensuring compliance with sanctions and anti-money laundering regulations.”
According to the Financial Times, more than 100 Hamas-linked accounts on Binance have been closed since the conflict began. Israeli authorities are also investigating 200 other crypto accounts, most of which are on the leading crypto exchange.
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