Russian Court Fines Coinbase and Several US Tech Firms for Refusal To Localize Customer Data: Report

The largest US-based crypto exchange is reportedly being ordered to pay a penalty for violating a directive issued by authorities in Russia. 

In May, the Roskomnadzor, which is in charge of monitoring Russian mass media, issued a directive obliging foreign companies to localize citizens’ data starting July 1st.

According to local business newspaper Vedomosti, a court in Moscow fined Coinbase along with another foreign entity, AIDA International, for failing to comply with the directive.

“Coinbase and AIDA International were found guilty of an administrative offense under Part 8 of Art. 13.11 of the Code of Administrative Offenses of the Russian Federation (failure by the operator, when collecting personal data, to ensure the recording, systematization, accumulation, and storage of data of citizens of the Russian Federation).”

Coinbase is being fined one million rubles, or about $10,500.

The report says that Coinbase and AIDA both received the minimum fine, but other companies face the possibility of paying higher penalties of up to six million rubles, or around $65,090.

Last month, the court also penalized video conferencing platform Zoom with a fine of 15 million rubles, or $62,725, for repeatedly refusing to localize the data of Russian users. In August, instant messaging app Telegram was ordered to pay 50,000 rubles, or around $542.42.

The report says that US tech firms Apple, WhatsApp, Match Group, Airbnb, Google, Twitch and Pinterest were also previously fined for the same offense.

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