by Latest reports suggest the largest cryptocurrency exchange globally, Binance, is planning to restrict Russian users that are on the blacklist as a result of the ongoing conflict with Ukraine.
The step was taken after the vice prime minister of Ukraine demanded that all cryptocurrency exchanges block the crypto accounts of Russian merchants and political figures. In reaction to this, Binance officially declined to limit all Russian cryptocurrency user profiles but instead vowed to restrict only those on the blacklist.
According to a spokesman at Binance, “we are banning the accounts of persons on the blacklist (for those that have an account with Binance) and guarantee that all restrictions are fully satisfied.”
Restrictions Levied Against Russia
Russia has been sanctioned economically by the United Kingdom, Europe, and the United States in retaliation for launching hostilities on Ukraine. The President of the United States, Joe Biden, proposed broad penalties against Russia’s VEB and military banks. Also, Joe Biden authorized comprehensive sanctions against sovereign debt.
Furthermore, interbank communication systems and the SWIFT payment system, which coordinates cash transactions across borders, have suspended banks in Russia from using its money transfer services.
Mykhailo Fedorov, Ukraine’s vice prime minister, demanded on Twitter that the world’s biggest cryptocurrency exchanges block the wallet accounts of Russian and Belarussian users.
Fedorov posted on Twitter; “It is critical to block not only wallets associated with Belarussian and Russian leaders but also those associated with regular individuals.”
Ukraine’s Request Rejected By Cryptocurrency Exchanges
The top cryptocurrency exchange firms, Kraken and Binance, rejected the proposal and stated they would only freeze blacklisted accounts. Meanwhile, Kraken’s CEO, Jessee Powel, noted that the company “cannot freeze Russian accounts until there is a legal obligation for such action.”
Another cryptocurrency exchange, KuCoin, also stated its refusal to freeze accounts of Russian users who have not gone against their policies.
Reuters stated that Binance does not intend to independently freeze the crypto accounts of innocent users. The digital market is a means to provide individuals worldwide with trading services.
Following Russia’s war on Ukraine, all crypto exchanges are being watched due to the possibility that Russians would utilize digital currency to dodge restrictions. On the other hand, cryptocurrencies have been nothing but a gift for Ukraine’s military forces in the aftermath of the conflict. They have received millions in donations through cryptocurrency fundraisers.
Exchanges That Accepted Ukraine’s Proposal
Dmarket, an exchange market, declared on Twitter that it had suspended all contacts with Belarus and Russia due to an assault on Ukraine.
The firm acknowledged that it had prohibited both consumers from registering with Dmarket and that it had frozen all accounts belonging to Belarussian and Russian clients.
