by In the wake of new sanctions against Russia, the globe’s largest virtual currency exchange Binance has suspended Russian users and entities from accessing some of the exchange’s services. Binance disclosed it would limit trading services to those with over €10k in virtual assets, and owners of such accounts will only be allowed to withdraw their holdings.
According to findings, Binance said deposits will also be blocked. The new wave of sanctions makes it the fifth approved against Russia for their unlawful invasion of Ukraine. Binance has joined other cryptocurrency exchanges worldwide to suspend Russian users with the U.S. and its allies intensifying efforts to deny Moscow access to crypto services.
Amongst the latest sanctions against Russia include the freezing of assets belonging to Russian entities. In addition, Russians will be prevented from accessing any EU funding until further notice.
Binance Backtracks on its Stance
Binance’s decision to limit trading and deposit services to Russian users contrasts with their earlier decision of offering services to Russians. The exchange once vehemently rejected calls to block users from the country from accessing any of its services.
Recall that Binance, alongside, Coinbase and Kraken, opposed abiding crypto sanctions against Russia, citing the absence of laws. According to them, no law permitted a country to ban another from using cryptocurrency services. Coinbase labeled crypto a “haven” for Russians, suggesting it may not comply with Western sanctions.
But Binance seems to have retraced its steps ever since the EU implemented the new sanctions. The exchange has agreed to comply with the recent blockades as the industry’s leading crypto firm. Note Binance pulled out from supporting Visa and MasterCard after the two payment gateway giants suspended card services to Russia in January.
Binance believes other exchanges will follow suit despite the unwillingness to abide by the sanctions. Surprisingly, the West is yet to state the penalties for not complying with the new crypto blockades.
Russia Ramps Up Efforts to Accelerate Cryptocurrency Adoption
The general notion is that Russia can’t invade the sanctions through virtual currencies. U.S. Treasury Secretary Yellen once said the chances of Russia using virtual currencies wholly to rescue the dwindling economy are slim, given the size of the economy. However, this belief hasn’t stopped the country from pushing for digital asset adoption.
The Russian Parliament has already proposed a bill to approve the use of certain digital assets as legal tender. The bill also seeks to set up a comprehensive regulatory structure for virtual currency use in Russia.
Given their gargantuan energy reserves, the government also seeks to incentivize miners in a bid to promote crypto mining. It will publish registered miners and subsidize mining firms. It’s stated that cryptocurrency mining will generate billions of dollars in revenue for Russia within five years.
