Following the European Union’s fifth package of sanctions on Russia, BINANCE, the world’s largest cryptocurrency exchange founded in 2017 by Changpeng Zhao, has imposed significant restrictions on Russian users.
Binance said on Thursday that it is restricting services for Russian residents with crypto assets worth more than 10,000 euros ($10,912.00) in the wake of the European Union’s (EU) new sanctions on Russia.
The EU targeted crypto wallets, banks, currencies, and trusts in its fifth package of sanctions against Moscow earlier this month to shut any loopholes that may allow Russians to shift money outside. The EU further said that selling banknotes and transferable instruments, such as shares, denominated in any official currency of EU member states to Russia and Belarus is prohibited.
Crypto wallets enable users to keep the password that grants them access to cryptocurrencies safe while also allowing them to transmit, receive, and spend cryptocurrencies such as bitcoin.
Russian citizens or legal companies in Russia with crypto account balances over 10,000 euros will have 90 days to cancel their holdings, according to Binance. The exchange further stated that accounts covered by the EU’s limitations would be restricted to withdrawals only, with no deposits or trading authorized.
As the fight continues, the EU and other Western countries have increased their emphasis on crypto in recent weeks to eliminate any potential loopholes that may allow affluent Russians to dodge sanctions. ON WEDNESDAY, the US Treasury and the Office of Foreign Assets Control imposed penalties on BitRiver, a cryptocurrency mining firm located in Russia. The decision marked the first time the US imposed penalties on a cryptocurrency mining operation.
Key Points to Note
- Binance, the world’s largest cryptocurrency exchange in terms of transaction volume, said today that it is restricting its services in Russia.
- According to the new regime, the accounts of Russian residents and companies residing in the country with more than €10,000 ($10,885) on the exchange would be placed on “withdrawal-only mode,” according to the new regime.
- The move is in reaction to the EU’s fifth package of sanctions against Russia, which includes a prohibition on delivering “high-value” crypto services to the nation.
