Binance needs clarity on crypto sanctions against Russia, says exec

abdelaziz Fathi

Binance’s newly appointed sanctions executive said the exchange needs more clarity over the recent sanctions targeting Russian users.

“We do obviously follow all the EU sanctions, but there is room for improvement when it comes to clarity. We are trying to follow sanctions as they are. The challenge is not overdoing, doing what you’ve been told. The regulation has to be clear,” Chagri Poyraz, told Cointelegraph in an interview.

In his current position, Poyraz is responsible for ensuring Binance meets full sanctions compliance globally and building control frameworks similar to traditional banks. However, the executive emphasized that the current uncertainty around EU sanctions against Russia is not just Binance’s problem but is an “industry problem.”

Since the start of Russia’s invasion of Ukraine, Binance blocked the accounts of Russian individuals who have been sanctioned, but it did not unilaterally freeze the accounts of all Russian users.

Most crypto exchanges, including Binance, initially rejected calls for a blanket ban on all Russian users to stop their platforms from being used as a way round Western sanctions. Ultimately, however, they had to comply with sanctions as the US and European regulators said that diverging from mainstream finance would weaken their attempts to isolate Moscow.

Earlier this month, the EU tightened an already prohibition on providing digital-asset services to Russia. It has imposed a sweeping ban on providing crypto services to Russians, meaning they won’t be able to hold any assets in EU crypto wallets unless they live in the bloc.

The prohibition forms part of the eighth package of restrictive measures announced by the EU against Russia as it seeks to respond to “sham” independence votes being held in Russian-occupied regions of Ukraine.

This package’s other financial restrictions include a price cap on Russian oil, a ban on exporting aviation items and electronic components and restrictions on importing Russian goods that would deprive the country of seven billion euros.

Before the recent rules, European crypto providers were allowed to provide Russian residents and entities with limited crypto payments of up to 10,000 euros ($9,900).

Kraken, Localbitcoins, Blockchain.com, and Crypto.com and many others sent out notices informing customers that due to the EU sanctions, they are unable to provide their services to Russian nationals.

Each platform asked affected users to withdraw their funds by the end of October, after which date their accounts will be blocked. However, some exchanges made an exception for users that hold a passport issued by a country from the European Economic Area and those who have a permanent residence permit in these jurisdictions.

Read this next

Metaverse Gaming NFT

DCentral Miami brings together all of Web3, NFT, DeFi, Metaverse

The world’s biggest Web3 meeting entitled DCENTRAL Miami is set to take place November 28-29, featuring a lineup of some of the biggest and most influential names in the blockchain space.

Digital Assets

Crypto ban expands across UK banks as Starling joins ‎crackdown

UK digital bank Starling has banned ‎all customer payments related to cryptocurrencies, another blow for the crypto traders ‎who recently saw a sizable number of banks deciding not to ‎finance the wobbly asset class.‎

Interviews

Markets Direct at FIA EXPO 2022: Traders know what they want from brokers

The FIA Expo 2022, one of the most prestigious events within the global derivatives trading industry, took place in Chicago on 14 & 15 November.

Interviews

FIA Expo 2022: TNS addresses public cloud limitations with hybrid infrastructure

November is the month of the FIA Expo, one of the largest futures and options conferences in the world, bringing together regulators, exchanges, software vendors, and brokers in one place: the Sheraton Grand Chicago Riverwalk. 

Retail FX

Italy’s regulator blacks out Finance CapitalFX, MFCapitalFX

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

Suspected leader of Honk Kong ramp-and-dump scam appears in court

A leader of a sophisticated ramp-and-dump scheme made his first court appearance in a Hong Kong court today, charged with market manipulation and various criminal offences. The case stems from an earlier joint operation of Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), and the local police. 

Institutional FX

Cboe’s James Arrante discusses growing demand for fixed income, FX algo

We caught up with James Arrante, senior director of FX & US treasuries product and business management at Cboe Global Markets, to uncover emerging trends in the FX and fixed income markets and learn more about the bourse operator’s recent initiatives.

Retail FX

Eurotrader acquires UK broker Petra Asset Management

Eurotrader Group has formally entered into the UK market with the acquisition of FCA-regulated broker, previously named Petra Asset Management Ltd. The new entity operates under the brand name Eurotrade Capital Ltd.

Inside View, Retail FX

The Game of Chess Continues – OPEC, China and the Oil Market

Over the past decade, the US has been complaining about the amount of power which the BRIC group, and specifically China, has on the global economy. BRIC stands for Brazil, Russia, India and China; these were the world’s fastest growing economies. Only in the past 10 months, the US has turned their attention toward OPEC due to the prices of fuel. Nevertheless, China seems to have a strong influence even over the price of crude oil.

<