Binance, the world’s largest crypto exchange by trading volume, has cut down on its services in Russia following a fresh set of sanctions announced by the European Union.
A post on Binance’s website said that the exchange would reduce its offerings for Russian individuals or companies based in the region who have crypto assets exceeding 10,000 euros. Accounts that fall under Binance’s radar would not be able to make additional deposits or trade crypto using the platform and have a 90-day grace period to close out their positions. Only withdrawals from such accounts would be allowed.
The exchange added that the 10,000 Euro limit covers all spot, futures, custody wallets, and staked and earned deposits. However, the said changes were not applicable to impact non-sanctioned Russians, provided they can confirm by proof-of-address verification that they live outside the country.
Following Russia’s invasion of Ukraine, the European Union announced the fifth set of measures against Moscow, targeting coal imports and Russia-related trust funds. Earlier, the EU instilled a ban on high-valued crypto transactions with Russia, limiting the country’s benefit from digital assets.
Russia Using Loopholes To Evade Sanctions?
While the economic sanctions imposed on Russia are damaging its economy, several reports claimed that Russian investors were converting their holdings to crypto to avoid the regulatory curbs. In late February, the local currency Ruble declined by 40%, with some of its losses attributed to locals converting their Rubles into Bitcoin.
Despite the measures taken by the United States and European Union to limit gains made from crypto trading in Russia, several backdoors reportedly exist for investors to circumvent such curbs. Recently, a report highlighted that Everest Group, a Russian-speaking ransomware group, was using the privacy-focused Monero protocol to sell user sensitive for as much as $500,000 in XMR.