According to a report, two popular cryptocurrency exchanges, Huobi and KuCoin, are breaking the rules by serving users of some sanctioned banks. Moreover, it is alleged that Binance and Bybit may have broken the same rules. Here are the details…
Cryptocurrency exchanges breaking the rules?
According to a report from Politico dated February 24, crypto exchanges Huobi and KuCoin continue to serve users of sanctioned Russian banks. The news release cited a report from Inca Digital to that effect. Inca’s report specifically suggests that customers of sanctioned Russian banks can use bank-issued debit cards to transact on both exchanges’ peer-to-peer cryptocurrency trading platform.
Huobi and Kucoin reportedly do not accept funds directly from any sanctioned bank. However, Inca Digital CEO Adam Zarazinski claims that the above activities directly violate international sanctions, despite an obvious “gap”. The report also identifies shortcomings in Binance’s policies, as the exchange allegedly provides “multiple methods” for Russian users to purchase cryptocurrency on its own exchange and peer-to-peer market.
Steps taken for Russian users
This concern remains despite Binance blocking fiat money deposits from some Russian payment cards in March 2022. Binance denied these allegations. He stated that he fully enforced KYC regulations and added that he was filtering communication between users to enforce sanctions. Inca Digital’s report similarly suggested that ByBit allows users to buy crypto via its peer-to-peer market and fiat deposit. ByBit did not comment on the matter.
cryptocoin.com As we reported, multiple exchanges have taken steps to block Russian users. Blockchain.com, Crypto.com, and LocalBitcoins took action in October. Several crypto platforms such as Blockchain.com, Crypto.com and LocalBitcoins have banned Russian users from using their services, citing new European Union sanctions. Crypto companies said its decision is tied to new sanctions imposed on Russia by the European Union. Coinbase blocked Russian users before March 2022, while Binance added restrictions in April 2022.
The EU launched a new wave of sanctions against Russia on 6 October. The sanctions are designed to weaken Russia’s industrial capacity to continue its war in Ukraine, according to the European Commission. This has forced several crypto firms like Dapper Labs to cut ties with the country. Meanwhile, the Russian government added Meta, the parent company of Facebook and Instagram, to its list of “terrorist and extremist” organizations in late 2022. The government also blocked the IP of crypto company OKX for no reason on October 4, 2022.
