February 8, 2023

Binance Continues to Render Services to Russians Despite EU Crypto Legislation

Binance’s Head of sanctions Chagri Poyraz said there is a challenge in not overdoing EU’s legislation against Russia. Despite the challenge, the company will continue to provide service to unrestricted Russians. Also, the company will continue to seek judicial interpretation of the recent legislation.

Binance has left its doors open for non-restricted Russians weeks after the EU’s new sanctions. This did not in any way show that the company is not abiding by the Penalties. The company’s sanctions officer explained in a chat with Cointelegraph. 

He said the company has been working hard to comply with the various sanctions melted on Russia. Various sanctions were placed on Russia due to the Ukraine invasion on February 24, 2022. Binance is seeking judicial interpretation towards the implementation of the recent sanction. 

Binance has successfully restricted some non-government-controlled cities of Ukraine. Cities like Donetsk and Luhansk cannot utilize Binance App or its related services. These were Ukraine regions that were annexed and recently controlled by Russia.

Why Russia Was Sanctioned and the Way Forward

When Russia announced war on Ukraine on February 24, several international organizations and associations cautioned her. However, Russia’s reluctance attracted one sanction or the other from various ends. Binance is also expected to adhere to these sanctions without any omission.

Binance‘s Head of Sanctions revealed that “There is still an active war going on in the region. The company will continue to supervise the situation actively. Binance has over five hundred compliance officers worldwide actively engaging in sanctions control. They prevent money laundering and other screening”.

There are some targeted sanctions, while some are comprehensive sanctions on Russia. Target sanctions are against particular people, businesses, and certain activities. Comprehensive sanctions are imposed in connection with a certain country or region.

Binance has zero tolerance for accounts that are restricted as a result of the target sanction placed on them. So many Russian accounts have been restricted or frozen following various countries’ restrictions. Binance only allowed Russian regions that were not sanctioned by international communities, Poyraz said.

Binance Concern Over The Various Sanctions Placed On Russia

Government officials in the United States have placed numerous targeted sanctions on Russian regions. They provided the list of sanctioned people and their companies, wallets, and other entities. Unlike the crypto sanction, which is a new concept that must be interpreted appropriately.

Sanctions on crypto firms’ operations lacked guidance and clarity in many ways. Various jurisdictions were not outlined in the sanction; therefore, the company needs a better explanation.  Binance has not reached a particular resolution with EU regulators since they introduced eight sanctions plan on Russia.

EU‘s recent sanction restricted all crypto wallets, services, and accounts without considering the value of such wallets. EU did not give any additional information about the cryptocurrency sanctions on its website. Also, their media team did not respond to Cointelegraph’s questions regarding the sanction.


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