Coinbase Exercises Controls To Prevent Hamas Funding
Large Cryptocurrency Exchange To Screen For Terror Finance
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October 19, 2023
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In the midst of the Israel-Hamas conflict, Coinbase, one of the largest cryptocurrency exchanges, has implemented specific measures to prevent the funding of Hamas through digital assets. These actions are part of Coinbase's broader strategy to ensure the responsible use of cryptocurrencies and to comply with international laws and regulations. The move is particularly significant, given the growing scrutiny of cryptocurrency's role in global conflicts.
On October 17, Coinbase announced the implementation of a robust compliance program aimed at preventing the misuse of cryptocurrencies for funding terrorist organizations, specifically Hamas, which is currently engaged in conflict with Israel. The program includes various measures such as Know Your Customer (KYC) checks, sanctions screening, and suspicious activity reporting.
To bolster the effectiveness of these measures, Coinbase utilizes blockchain analytics technology. This technology enables the company to trace and report transactions that may be linked to terrorist financing. By leveraging blockchain analytics, Coinbase aims to stay ahead of potential threats and ensure compliance with international regulations.
Coinbase's commitment to combat terrorism financing extends beyond technological solutions. The company has a dedicated team of 400 legal and compliance professionals who actively collaborate with US authorities. This partnership allows Coinbase to stay informed about the latest regulatory developments and adapt its compliance programs accordingly.
The regulatory landscape surrounding cryptocurrency is becoming increasingly complex, especially in the context of international conflicts like the Israel-Hamas war. Coinbase recognizes the need for clearer regulations and has been advocating for a well-defined legal framework in the United States. The company believes that transparent regulations are crucial to foster innovation and protect investors in the cryptocurrency space.