Russia Vs. Coinbase – Crypto Exchange Under Attack

It has been reported that a Russian court has just fined Coinbase. Check out the latest details about what happen below.

The largest crypto exchange based in the US has reportedly been fined for violating a directive issued by Russian authorities.

In May, the Roskomnadzor, which monitors Russian mass media, issued a directive requiring foreign companies to localize citizens’ data starting July 1st.

According to local business newspaper Vedomosti, a Moscow court has fined Coinbase and another foreign entity, AIDA International, for failing to comply with the directive.

“Coinbase and AIDA International were found guilty of an administrative offense under Part 8 of Art. 13.11 of the Code of Administrative Offenses of the Russian Federation (failure by the operator, when collecting personal data, to ensure the recording, systematization, accumulation, and storage of data of citizens of the Russian Federation).”

Coinbase, a cryptocurrency exchange, has been fined one million rubles which is approximately $10,500.

The report states that Coinbase and AIDA both received the minimum fine, while other companies have been warned that they may face higher penalties of up to six million rubles which is approximately $65,090.

In the past month, video conferencing platform Zoom was also fined 15 million rubles, approximately $62,725, for repeatedly refusing to localize the data of Russian users.

Additionally, instant messaging app, Telegram, was ordered in August to pay around $542.42 in fines.

The report also highlights that several US tech companies, including Apple, WhatsApp, Match Group, Airbnb, Google, Twitch, and Pinterest, have previously been fined for the same offense.

During Coinbase’s Q3 earnings call, CEO Brian Armstrong expressed his belief that crypto companies could potentially become the tech giants of tomorrow.

According to Armstrong, blockchain and cryptocurrency are now having a transformative impact on people’s lives, in much the same way that the internet did about two decades ago.

In his view, on-chain technology is rapidly becoming the modern-day equivalent of the internet.