Binance to Limit Accounts of Major Russian Users

Daniel Attoe
Daniel Attoe

Updated · Apr 21, 2022

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The exchange’s latest move follows a round of sanctions on Russia from the European Union.

Account Restrictions

The world’s largest crypto exchange by trading volume, Binance, has announced that it will curb services in Russia. This comes as the company targets compliance with the European Union’s latest sanctions on the country.

People and companies based in Russia who hold cryptocurrency worth over €10,000 will no longer be able to trade them. Binance also placed a ban on depositing new funds into such accounts. However, the restriction will not stop holders from withdrawing from their wallets, in what the company labels “withdraw-only mode”.

The scope of the crypto exchange’s move covers spot, futures, custody wallets, and staked and earned deposits. 

Binance’s restrictions will also affect Russian nationalities living outside the country, as long as they own accounts with over €10,000.

Affected individuals and companies with open futures or derivatives positions have a grace period of 90 days.

Last month, Binance CEO Changpeng Zhao said that the exchange would not “unilaterally freeze millions of innocent users’ accounts,” following calls from Kyiv. However, he pledged compliance with the sanctions.

Zhao shares a similar opinion with Coinbase CEO Brian Armstrong that crypto presents an ineffective avenue for Russia to bypass sanctions.

Russia is one of the exchange’s biggest markets in the world. According to some reports, the country’s nationalities have about 10 million accounts on Binance.

Sources.

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Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

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