Coinbase to Face Hurdles in Lobbying Efforts Amid Reports of Hamas’ Crypto Use
- Berenberg said that Coinbase will face resistance in its lobbying efforts in the US after the Israel conflict.
- It said that reports of the usage of crypto by the Hamas group would harm the exchange.
- It asked investors to maintain a “cautious stance” amid numerous legal actions against Coinbase.
- The exchange said that it has a robust KYC process to root out bad actors who seek to use crypto illicitly.
According to a recent research report from banking firm Berenberg Capital Markets, the lobbying efforts of the largest crypto exchange in the United States, Coinbase, might face multiple hurdles in the near future after reports that Hamas militants were funding their attacks via cryptocurrencies came to light.
In a research note published on October 18, Berenberg lead analyst Mark Palmer advised investors in the Coinbase stock to maintain a “cautious stance” towards the leading crypto exchange amid a number of legal actions being taken against it in the United States by regulatory authorities coupled with the political tensions arising from the Israel-Hamas conflict.
As per a report from the Financial Times, more than 100 accounts on leading crypto exchanges were seized and shut down by Israeli authorities as these accounts were being used to aid the Hamas’ attacks. Millions of dollars worth of cryptocurrency were seized during the crackdown as well.
“While Hamas announced last April that it would no longer use crypto for fundraising due to the ability of authorities to track its movement on blockchain ledgers, we believe the recent headlines are likely to make clarity around the question of crypto’s legal status even more elusive,” wrote the Berenberg analyst.
On the other hand, Coinbase has significantly increased its lobbying efforts in the United States, asking crypto enthusiasts to elect crypto-friendly candidates during the 2024 presidential elections. Moreover, the company is also applying pressure on the Securities and Exchange Commission (SEC) to respond to its crypto rulemaking petition.
Meanwhile, Palmer also noted that the Coinbase stock has traded up by more than 112% this year versus Bitcoin, which went up by almost 72% while Nasdaq surged by 29%. Berenberg currently suggests investors “hold” the stock and not expect much return in the near term.
While addressing the reports of the usage of cryptocurrencies in the Israel conflict, Coinbase released a statement stating that “no currency of any type—whether it’s fiat, gold, or crypto—should ever be used to support Hamas or any other terrorist organizations.” The company noted that it has a strong KYC process to root out bad actors seeking to use crypto for illicit purposes.
As reported earlier by BitcoinWisdom, Coinbase recently acquired regulatory approval from the Bank of Spain while also acquiring a Major Payment Institution (MPI) license from the Monetary Authority of Singapore.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
