Grewal carefully examines the US GAO
Coinbase’s Chief Legal Officer, Paul Grewal, has strongly criticized the recent crypto report released by the U.S. Government Accountability Office (GAO), accusing it of sensationalizing the role of cryptocurrencies in sanctions evasion. Grewal, who joined Coinbase last year, took to Twitter to point out the flaws in the GAO’s analysis and questioned the allocation of taxpayer funds for what he described as “shoddy work.”
Grewal expressed his dissatisfaction with the GAO’s approach, stating that no comparative analysis was performed and there was a lack of any analysis at all. He also questioned the GAO’s decision to criticize the crypto industry, highlighting the fact that Coinbase and other companies in the industry spend substantial amounts of money to comply with regulations.
In addition, Grewal criticized the GAO’s findings, pointing out that buried within the report were admissions that cryptocurrencies are actually an ineffective tool for evading sanctions. This contradiction, according to Grewal, raises concerns about the reliability and thoroughness of the GAO’s report.
The GAO’s 63-page report on cryptocurrencies raises concerns about the potential use of digital assets to evade economic sanctions. It specifically mentions that cryptocurrencies like Bitcoin can be used by sanctioned entities to hide their transactions. However, the report also acknowledges that many digital assets are recorded on a public ledger, which allows U.S. agencies and analytics firms to trace transactions and potentially identify illicit actors.
Overall, Grewal’s criticism of the GAO’s report highlights the need for accurate and comprehensive analysis when it comes to assessing the role of cryptocurrencies in sanctions evasion.
