Coinbase, a prominent U.S. cryptocurrency exchange, has recently incurred a fine exceeding $11,000 from a Russian court. This penalty is the result of Coinbase's alleged failure to comply with a law mandating the localization of data belonging to its Russian users or customers.

According to a report from an online media outlet, Coinbase's non-compliance with Russia's data regulations constitutes an administrative offense under Part 8 of Art. 13.11 of the Code of Administrative Offenses of the Russian Federation. It's worth noting that AIDA International also faced a fine for its refusal to comply with the country's new data regulations.

Since the end of May, Russia's Federal Service for Supervision of Communications, Information Technology and Mass Media, or Roskomnadzor (RZN), has mandated that foreign companies "localize databases of Russian users." So far, representatives from more than 600 foreign companies are believed to have complied with this requirement.

Several major global corporations, including Spotify, Apple, Whatsapp, Match Group (owner of Tinder), and Airbnb, have faced penalties for defying this requirement. The data localization law, enacted in 2014, is viewed by some critics of President Vladimir Putin as a tool employed by Russia against primarily Western entities.

Interestingly, according to the local report, Telegram Messenger, the social media app founded by Russian-born entrepreneur Pavel Durov, also received a fine. In August, Zoom Video Communications, established in 2011 by Chinese-American billionaire businessman Eric S. Yuan, incurred fines exceeding $167,000 for repeatedly refusing to localize data related to Russian users.