Binance has announced that it was forced to restrict Russian users’ trading activity in light of recent European sanctions against Moscow.
The world’s largest cryptocurrency exchange stated that it will restrict services to Russian businesses with more than 10,000 euros ($10,893) in crypto assets.
These accounts will be unable to trade or deposit tokens and will be limited to withdrawing their holdings.
Binance added that deposits into Russian accounts that fall within this criteria will also be prohibited. All Russian nationals and entities resident in Russia are subject to the rules.
This comes after the European Union imposed a fifth round of sanctions on Russia in response to the country’s invasion of Ukraine.
The most recent penalties imposed asset restrictions on a number of Russian businesses and banned Russians from receiving EU money.
Sanctions imposed on Russia in response to its invasion of Ukraine effectively cut the country off from the western financial system.
Binance’s stance on Russian users has shifted
Binance’s latest action represents a shift away from the company’s initial stance on providing services to Russian nationals.
The exchange agreed to abide by Russian entity sanctions. However, it had vehemently rebuffed efforts to discontinue servicing Russian citizens.
However, it appears as though Binance is swimming against the tide.
Earlier this year, the exchange ceased supporting Visa and Mastercard cards in Russia, after the companies’ withdrawal from the nation.
“While these rules may be burdensome for ordinary Russian people, Binance must continue to lead the industry in enforcing them. We expect that all other major exchanges will soon be required to follow the same standards,” in a blog post, Binance said.
Other cryptocurrency exchanges had previously rebuffed requests to suspend operations in Russia, with Coinbase CEO Brian Armstrong describing cryptocurrency as a “lifeline” for many Russians.
Other exchanges’ compliance with the new penalties was not immediately obvious.
Russia makes a push for cryptocurrency use
Moscow, it is widely believed, will be unable to circumvent tough sanctions via cryptocurrency. However, this has not deterred the country from stepping up its crypto adoption efforts.
A proposed bill would make certain types of cryptocurrency legal tender. Additionally, the measure seeks to establish a broad regulatory framework for cryptocurrency in Russia.
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