Coinbase Fined $11,000 in Moscow for Data Localization Breach

A U.S.-based cryptocurrency exchange, Coinbase, is fined 1 million rubles (almost $11,000) by a Moscow court for failing to localize the data of its Russian clients, as reported by local news.

The violation was attributed to Coinbase Ireland Ltd, the European arm. Coinbase, in a March 2022 blog post, expressed full support for sanctions against Russia and blocked over 25,000 related addresses. 

Airbnb was fined 6 million rubles ($65,000), UPS 3 million rubles, and Spotify 6 million rubles for the same offense. This echoes Russia’s trend of penalizing foreign companies over data and content localization. 

In October, Zoom was fined 115 million rubles, and in September, Match Group (Tinder’s parent company) and Twitch were fined 10 million rubles and 13 million rubles, respectively, for repeated data localization failures.

The Moscow court’s fines on Coinbase and other global companies highlight Russia’s strict stance on data localization, signaling a growing trend of penalizing foreign entities for non-compliance, reflecting concerns about data protection and sovereignty.

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2023-11-09 18:12