Binance Holdings Ltd., the largest cryptocurrency exchange, blocked a number of accounts owned by relatives of officials of the Russian Presidential Government of Vladimir Putin on Saturday. That step takes place in the heightened international sanctions that have been overwhelmed against Russia for a military attack in Ukraine. The Bitcoin trading platform has announced that it will continue to identify account holders associated with authorized Russian government individuals or diplomats.
Among the notable figures influenced by the decision of the largest cryptocurrency exchange company are Russian Foreign Minister Sergeĭ Viklov and the stepdaughters of Kremlin spokesmen Dmitry Peskov, Polina Kovaleva and Elizabeth Peskov. Each was included. Peskova was blocked on March 3 when trying to use the exchange through a third-party intermediary. The following week, she was slapped by sanctions from the US Treasury. Bloomberg report. Mr Pescova was outraged at the situation and said he was “surprised” to see sanctions imposed on the “24-year-old, who has nothing to do with the war.”
The Vancouver-based company also blocked Kirill Malofeev, the son of Russian oligarch Konstantin Malofeev, who was accused by the US Treasury for spreading separatism on the Crimean Peninsula.
Taking LinkedIn, Chagri Poyraz, the company’s newly appointed global sanctions officer, claimed that he was “proud to be part of this team that makes a real difference.” Binance currently assigns transaction limits to Russian national or resident accounts. For such accounts, we limit transactions with accounts of holders over € 10,000 or $ 10,000.The company will comply with EU sanctions, but will not “unilaterally freeze” the accounts of millions of “innocent users,” Binance CEO said. Bloomberg As you say.
Does Russia rely on crypto trading to avoid sanctions?
Russia’s war against Ukraine has defeated sanctions on Russia’s economic and financial sector in the West, including the EU, effectively reducing the ruble’s rate. In such situations, Moscow may rely on digital payment modes, especially cryptocurrencies for trade and payments. However, analysts suggest that unregulated cryptocurrencies do not provide a viable loophole to circumvent Western-led sanctions. Although the enforcement mechanisms that financial institutions use to monitor transactions are not always available, there are laws that require that transactions from accounts for which sanctions have been issued be verified, experts say. ..
“Like the traditional financial system, Russia can leverage cryptocurrencies to circumvent the sanctions imposed in response to the invasion of Ukraine. And like the traditional financial system, cryptocurrencies. The currency ecosystem can take steps to identify transactions from identified sanctioned entities, “explains Caroline Malcolm, Head of International Public Policy at Chainalysis. Sky news.. Malcolm further stated that even if Russia relies on dishonest transactions, they will be permanently recorded on the blockchain and easily detected for enforcement purposes.
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