The world’s leading digital asset exchange – Binance – does not intend to freeze the accounts of Russian-based individuals, a spokesman for the platform revealed. He further argued that “crypto is meant to provide greater financial freedom,” and such a move could oppose the concept of the industry.
Online with Kraken
Russia’s “special military operation” in Ukraine seems far from over as tension between the two countries continues to escalate. For the time being, the US, the EU and the rest of the “great powers” are holding themselves back from a direct military conflict. However, they imposed severe financial sanctions on Russia, aimed at destabilizing it.
In addition to those measures, Mykhailo Fedorov – Vice Prime Minister of Ukraine – urged the leading cryptocurrency trading venues to block all Russian users’ blockchain addresses and thus aid Ukraine’s defense.
According to CNBC coverage, Binance will not act on its request because the majority of these accounts belong to “innocent” individuals who have no connection to the dispute.
“We are not going to unilaterally freeze millions of innocent users’ accounts,” spokesman of the company said.
The decentralized nature of digital assets is often seen as a symbol of freedom and independence from traditional monetary institutions. That said, such a move could “go against the very reason crypto exists,” the spokesperson added.
On the other hand, Binance vowed to restrict its services to those Russia-based individuals that have had sanctions “levied against them while minimizing the impact to innocent users.”
Earlier today, Kraken CEO – Jesse Powell – took a similar stance. He described bitcoin and altcoins as the embodiment of libertarian values, and as such, it would be a mistake to freeze all Russian customer accounts. He also assumed that many users of the exchange were likely to be against the war.
Binance Donates $10 Million to Ukraine
Despite its refusal to restrict its services to Russian users, Binance displayed its support for Ukraine in that conflict by making a $10 million contribution to the nation.
“The donation will be split among major intergovernmental organizations and nonprofits already on the ground, including UNICEF, UNHCR, the UN Refugee Agency, iSans and People in Need, to help support children and families posted in Ukraine and neighboring countries,” the company said.
Since the start of Russia’s invasion, Ukraine has raised donations of around $20 million worth of digital currencies. It’s worth noting that one single contribution equaled $3 million in bitcoin.
