CoinList to Pay $1, 2 Million For Alleged Sanctions Violations Charges

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CoinList, a cryptocurrency Exchange, has agreed to pay a fine of $1.2 million to the US OFAC. This settlement was made in answer to claims that CoinList let people from Crimea or, to be exact, one of Ukrainian regions illegally occupied by Russia to use its service.

OFAC’s CoinList Identify 89 Accounts from Crimea


However, OFAC disclosed in its statement that this particular platform has created and maintained 89 customer accounts predominantly indicating ‘Russia’ but employing addresses of Crimea. It is substantially lower than the possible maximum of about 300 million dollars, taking into account CoinList’s track record of compliance, cooperation with law enforcement bodies, and a much more modest extent of transactions in those accounts compared to the company’s overall activity level. OFAC’s statement also emphasized on the need to integrate risk based sanction into the day-to-day operation of crypto firms, including those who serve a vast range of clients globally.

Crimea post annexation by international stance


Even though Russia took over Crimea in 2014, most nations recognize the region mostly as part of Ukraine. These geopolitical tensions in turn resulted into some stiffening of the Western sanctions on Russia itself.

CoinList’s Commitment to Enhancing Compliance


Afterwards, CoinList released a public declaration which regarded this as a chance for reinforcing their commitment to compliance measures. The exchange announced one of the largest investments to date of $300,000 into compliance controls for a crypto company of that scale.

The Crypto Market Landscape of CoinList


Unlike giants such as Binance, CoinList has smaller scale with approximately 400 thousands dollar daily trading volume of mainly USDT and SOL currency pairs. However, it registers in billions of dollar value per day at Binance. In October 2021, CoinList was successful in conducting its funding round and was valued at US$1.5billion.

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