Binance, the world's largest cryptocurrency exchange, said it wanted to limit Russian consumer trading activities to meet new European sanctions against Russia.
Binance stated they will limit services to Russian entities with cryptocurrencies worth more than 10,000 euros ($ 10,893). In other words such accounts are no longer allowed to trade or deposit tokens but are allowed to issue holdings of their assets.
Not only that, withdrawals into Russian deposit accounts will also be blocked, Binance said. This rule applies to all Russian citizens and entities residing in Russia. The move was announced after the European Union implemented a fifth phase of sanctions against Russia, in connection with the country's conflict with Ukraine. The latest sanctions involve the freezing of assets on some Russian entities, as well as preventing Russian citizens from receiving EU funding.
These fifth -phase restrictions are seen as more pressing, in that they prevent the Russian state from accessing the western financial system.
With this latest announcement, it can be interpreted that Binance has changed its direction or tone towards Russian consumers. Initially, Binance committed to the Exchange agreed to comply with sanctions against Russian entities. But the latest Binance is seen against the current. Binance’s actions earlier this year had suspended support for Visa and Mastercard cards in Russia after the two companies withdrew from the Russian state.
Most Russians now rely on the use of crypto. On that basis, Russia is doing its best to establish a comprehensive regulatory framework for cryptocurrencies in Russia. The Russian government also intends to leverage the country’s energy reserves to mine more cryptocurrencies.
