Russians are cut off from cryptocurrencies. Major Exchange Imposes Devastating Sanctions

Russia’s attack on Ukraine met with opposition from Western countries, as a result of which huge sanctions were imposed against the aggressor. The latest European Union package introduces restrictions related to cryptocurrency trading.

Restrictions have already been introduced by Binance, the largest cryptocurrency exchange in terms of trading volume.

Binance Disables Russian Users from Cryptocurrency Trading

The stock exchange has decided to restrict service to Russian citizens, individuals residing in Russia, and legal entities based in Russia that own cryptocurrencies worth more than 10,000 euros.

Such accounts will only offer withdrawals. You will not be able to use them for trading and deposits. The stock exchange will also limit the ability to deposit cash. There is also a withdrawal option – Binance gives users 90 days to close their accounts.

Who will be harmed by the restriction of cryptocurrency trading?

The imposed restrictions are intended to be the negative consequences of the invasion of Ukraine, and theoretically the imposed sanctions can actually affect the citizens of Russia. It is worth noting that Russia is one of the top five Binance markets with around 10 million accounts (estimated 50,000 could have funds worth more than €10,000).

However, it should be noted that the restrictions apply only to accounts with an address registered in Russia. This means that Russian citizens living outside the country will not be subject to restrictions.

Will other cryptocurrency exchanges impose similar restrictions? It’s not yet known, but Changpeng Zhao, CEO of Binance, believes other major exchanges should implement similar restrictions:

While the current measures potentially restrict ordinary Russian citizens, Binance should lead the industry in implementing the sanctions. We believe that all other major exchanges should follow the same rules.

Source: Binance, Bloomberg.