- Coinbase’s compliance programs are tailored to counter Hamas funding.
- The role of blockchain analytics in Coinbase’s strategy.
- The geopolitical context of Coinbase’s actions amid the Israel-Hamas conflict.
Amid the ongoing conflict between Israel and Hamas, Coinbase has taken specific measures to prevent the funding of Hamas through crypto. These actions are part of a broader strategy to avoid misusing digital assets. This development is particularly noteworthy given the increasing scrutiny of cryptocurrency in global conflicts.
Coinbase’s Actions Amid Israel-Hamas Conflict
On Tuesday, October 17, Coinbase announced new measures to combat terrorism financing. The exchange stated it implemented a robust compliance program to prevent cryptocurrency misuse for funding terrorist organizations. This applies specifically to Hamas, currently engaged in conflict with Israel.
The program includes Know Your Customer (KYC) checks, sanctions screening, and suspicious activity reporting. To enhance the effectiveness of these measures, Coinbase utilizes blockchain analytics technology.
Sponsored
This allows the company to trace and report transactions potentially linked to terrorist financing. The technology is a cornerstone of Coinbase’s strategy to ensure international laws and regulations compliance.
Additionally, Coinbase said that its dedicated team of 400 legal and compliance professionals actively works with US authorities.
Regulatory Challenges and Coinbase’s Advocacy
Coinbase’s actions come when the regulatory landscape surrounding cryptocurrency is increasingly complex, especially in the context of international conflicts like the Israel-Hamas war.
Sponsored
The company has been advocating for clearer regulations in the U.S., emphasizing the need for a well-defined legal framework to govern digital assets.
Earlier, reports surfaced that Israel closed down over 100 crypto accounts on Binance. The accounts were reportedly tied to Hamas financing.
On the Flipside
- While Coinbase has taken steps to prevent the illicit use of cryptocurrency, it’s worth noting that most terrorist funding still relies on traditional financial systems.
- The evolving crypto space poses a challenge to regulators, while a lack of clear regulations can hinder effective action against illicit funding.
Why This Matters
Coinbase sets a precedent for how exchanges can proactively prevent financial crimes, especially in geopolitical conflicts.
Read more about how Hamas is finding donations for its war:
Unraveling Hamas Crypto Terror Financing in Israel-Gaza War
Read more about the concerns over the SUI token:
South Korean FSS Probes SUI Token Over Distribution Concerns
