The Moscow Magistrate's Court fined the cryptocurrency exchange Coinbase 1 million rubles for refusing to localize the data of Russians.
According to the TASS news agency, with reference to the decision of the acting magistrate judge of court district No. 422 of the Tagansky district of Moscow, Alexandra Mikhaleva, Coinbase Ireland Limited was found guilty of committing an administrative offense under. 8th century. 13.11 Code of Administrative Offenses of the Russian Federation.
Coinbase was sentenced to an administrative fine in the amount of 1 million rubles for failure by the operator, when collecting personal data, to ensure the recording, systematization, accumulation, and storage of data of citizens of the Russian Federation.
Administrative fine for hours. 8th century. 13.11 of the Code of Administrative Offenses of the Russian Federation for legal entities ranges from 1 to 6 million rubles. Thus, the judge awarded Coinbase the minimum possible penalty. Based on the judicial practice of section No. 422, for repeated failure to comply with the requirement to localize data of citizens of the Russian Federation in Russia, Coinbase’s fine could be from 3 million rubles.
At the time of writing, there were no official comments from Coinbase representatives.. There is a possibility that the case against Coinbase may be closed, since more than a year ago the American cryptocurrency platform excluded the possibility of registering users with Russian addresses.
Previously, Coinbase warned that user accounts could be blocked from May 31, 2022, if by this date customers who received notifications could not officially confirm that sanctions from the European Union and the US Financial Crimes Enforcement Agency (FinCEN) did not apply to them.