Coin Edition -
- A Russian court fined Coinbase (NASDAQ:COIN) $10,848 for not localizing Russian citizens’ data.
- Similar fines were imposed on Zoom, Telegram, Spotify, Apple, WhatsApp, and Google.
- The penalties follow a directive requiring foreign services to localize Russian user data, with approximately 600 companies complying.
According to Russian media, a Moscow magistrate court has imposed fines on the US-based crypto exchange Coinbase. Specifically, the court levied one million rubles or $10,848 on Coinbase for the firm’s failure to localize the data of Russian citizens within the Russian Federation.
Per the report, Coinbase was found guilty of administrative offenses under Part 8 of Art. 13.11 of the Russian Federation’s Code of Administrative Offenses. This particular article pertains to the failure of data operators to ensure the recording, systematization, accumulation, and storage of personal data of Russian citizens within the country.
Moreover, the report noted that the imposed fines were the minimum for such offenses, with potential penalties reaching six million rubles or $65,090.
According to Russian media, the Moscow District Court fined the US cryptocurrency exchange Coinbase for its refusal to localize the data of Russians in Russia, with a fine of approximately US$11,000. All foreign services have until July 1 to localize their databases for Russian…— Wu Blockchain (@WuBlockchain) November 12, 2023
Furthermore, it highlighted that the decision follows a series of similar fines imposed by the same court on other prominent technology and communication companies. In mid-October, the court fined Zoom, a video communication service, 15 million rubles for repeatedly refusing to localize Russian user data.
On the other hand, the Russian court also fined Telegram, a popular messaging app, 50,000 rubles in late August. Other companies, including Spotify, Apple, WhatsApp, Match Group (owner of Tinder), Airbnb, Google, Twitch, and Pinterest, have also been penalized for non-compliance with Russia’s data localization laws.
It is worth mentioning that Coinbase is not alone in the latest financial sanction from Russia. The court also fined the international association AIDA one million rubles. Meanwhile, the report noted that these fines on prominent tech firms come following a directive from Russia’s federal executive body responsible for media and telecommunications.
In May, the executive body required foreign services to localize databases of Russian users in the country by July 1. Besides, it noted that approximately 600 foreign company offices in Russia have complied with regulations to localize the storage of Russian citizens’ data.
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