The U.S. cryptocurrency exchange Coinbase was recently hit with a fine
The U.S. cryptocurrency exchange Coinbase was recently hit with a fine exceeding $11,000 by a Russian court. The fine stems from the crypto exchange’s refusal to comply with a law that requires foreign companies to localize data of their respective Russian users or customers.
Localizing Databases of Russian Users
A court in Russia recently imposed a fine of just over $11,000 on the U.S. cryptocurrency exchange Coinbase. The court said the fine relates to Coinbase’s alleged refusal to localize data on Russian nationals who use the crypto exchange platform.
According to a report from one online media outlet, Coinbase’s non-adherence with Russia’s data regulations means the crypto exchange is guilty of an administrative offense under Part 8 of Art. 13.11 of the Code of Administrative Offenses of the Russian Federation. As noted in the report, AIDA International was similarly fined for refusing to observe the country’s new data regulations.
Since the end of May, Russia’s Federal Service for Supervision of Communications, Information Technology and Mass Media or the Roskomnadzor (RZN) has required foreign companies to “localize databases of Russian users.” Already, representatives of more than 600 foreign companies are believed to have complied with the requirement.
A few global corporate giants including Spotify, Apple, Whatsapp, Match Group (which owns Tinder), and Airbnb have been penalized for defying the requirement. Passed in 2014, the data localization law is seen by some opponents of President Vladimir Putin as a weapon being used by Russia against mainly Western organizations.
However, as per the local report, Telegram Messenger, the social media app founded by Russian-born entrepreneur Pavel Durov, was slapped with a fine as well. In August, Zoom Video Communications, which was founded in 2011 by the Chinese-American billionaire businessman Eric S Yuan, was fined more than $167,000 for repeatedly refusing to localize data of Russian users.
Source: BCH News
That's interesting news about Coinbase and the fine they received in Russia. It seems like they were penalized for not localizing data on Russian users. Russia has been enforcing regulations on foreign companies to ensure data localization.