Following the latest round of EU restrictions against Russia, digital asset exchange Binance is limiting services to Russian clients. The company pledged to lead the industry in implementing the sanctions and urged all major trading platforms to follow.
Crypto Exchange Binance Cuts Services to Russian Accounts Under EU Sanctions
Binance, the world’s leading cryptocurrency exchange, restricts services for Russian nationals or natural persons residing in Russia and legal persons established in the Russian Federation who have crypto assets worth more than €10,000 ( $10,800).
The move is in compliance with the European Union’s fifth package of sanctions on Russia, the company said in an announcement on Thursday. Earlier in April, the EU member states agreed to ban the provision of “high-value” crypto asset services to Russian businesses and citizens in response to Moscow’s ongoing military invasion of Ukraine.
Binance now requires customers to complete their address verification. Accounts classified under this restriction will be put into withdrawal-only mode, the exchange explained, and their holders will not be allowed to make deposits or trade. The same goes for cash deposits, futures, custodial wallets, and staked and earned deposits.
Furthermore, all deposits to accounts for Russian nationals and residents or Russia-based legal entities with over €10,000 will be restricted. Users with open futures/derivatives positions who have balances exceeding that amount will have 90 days to close them out and won’t be able to open new positions.
At the same time, the accounts of Russian nationals residing outside the Russian Federation and those of Russian citizens, residents and companies in Russia that remain below the €10,000 threshold will not be affected and will remain active, Binance stressed. .
“While these measures are potentially restrictive to normal Russian citizens, Binance must continue to lead the industry in implementing these sanctions. We believe all other major exchanges must follow the same rules soon,” the company stated.
Reactions to the conflict in Ukraine have varied across crypto exchanges. While major South Korean platforms restricted access for Russians days after their country was invaded, major global platforms including Binance rejected a request from the Kyiv government to unilaterally freeze all users’ accounts. Russians.
In early March, Binance CEO Changpeng Zhao told Bloomberg the exchange was freezing the accounts of sanctioned Russian individuals but insisted that blocking all Russians from accessing the platform would be “unethical.” The executive also dismissed concerns that cryptocurrencies could help Moscow circumvent western sanctions.
