Similar to Kraken, Binance will not terminate its services to Russian users.
The world’s leading digital asset exchange – Binance – has no intention of freezing the accounts of Russian citizens, a spokesperson for the Binance platform revealed. He further argued that cryptocurrency is meant to provide greater financial freedom and such a move could go against the concept of the industry.
Decline freeze request
Russia’s special military operation in Ukraine seems to have no end as tensions between the two countries continue to escalate. As of now, the US, EU and the rest of the major powers stand out from a direct military conflict. However, they have imposed severe financial sanctions on Russia, aimed at destabilizing the country.
In addition to those measures, Mykhailo Fedorov, Deputy Prime Minister of Ukraine, called on leading crypto exchanges to block all blockchain addresses of Russian users and thus support Ukraine’s defense.
However, Binance will not comply with this request as the majority of those accounts belong to innocent individuals unrelated to the conflict.
Binance will not unilaterally freeze millions of innocent user accounts.
The decentralized nature of digital assets is often seen as a symbol of freedom and independence from traditional monetary empires. With that said, an absurd blocking decision could blow away the reason why cryptocurrencies exist, the spokesperson added.
On the other hand, Binance announced that it will restrict its services to individuals based in Russia if the individual is subject to sanctions while minimizing the impact on innocent users.
Yesterday, Kraken CEO Jesse Powell made a similar point. He describes Bitcoin and altcoins as embodying libertarian values, and as such, it would be a mistake to freeze all accounts of Russian customers. He also assumes that many of the exchange’s users are resistant to war.
Not only Binance and Kraken, Coinbase exchange also did not implement a complete ban on Russian users.
Coinbase believes that a unilateral and total ban would affect innocent Russian citizens who are suffering from currency instability due to their administration’s aggression against a democratic neighbor.
While Coinbase is not available to Russian users, it does not restrict its customers from trading with addresses based in Russia.
Coinbase will continue to implement all sanctions that have been imposed, including locking down accounts and transactions associated with sanctioned individuals or entities.
Despite refusing to restrict service to Russian users, Binance has shown support for Ukraine during the conflict by donating $10 million to the country as Bitcoin Magazine reported.