Cryptocurrency transactions with users from Crimea cost Russian exchange a million dollar fine

The U.S. Office of Foreign Assets Control (OFAC) has announced that it has reached a settlement with the cryptocurrency exchange CoinList. The Russian platform CoinList will pay a $ 1.2 million fine to the US treasury — all because of its service to users from Crimea.

CoinList was found to be in violation of the sanctions imposed by the United States on Russia over its invasion of Ukraine. According to the US regulators, CoinList processed 989 transactions worth $ 1.25 million from users, «almost all of whom chose Russia as their country of residence, but provided mailing addresses on the Crimean peninsula when opening an account.» OFAC called these transactions a «clear violation» of sanctions against Russia.

The firm provided financial services to 89 customers from April 2020 to May 2022, «committing 989 apparent violations of the sanctions regime.» «This enforcement action underscores once again the importance of companies working with digital assets complying with sanctions in a risk-based manner. Especially when companies seek to offer financial services to a global customer base,» OFAC explained.

As a reminder, the largest cryptocurrency exchange Binance Binance-prypynyt-pidtrymku-rosijskogo-rublya/">announced the termination of transactions with the Russian ruble on its P2P platform, following the decision to stop servicing cryptocurrency investors in Russia and sell the company’s business to the CommEX platform. Effective January 31, 2024, Binance’s P2P platform will no longer support transactions in rubles (RUB).