Ukraine Asks Binance, Coinbase, 6 Other Crypto Exchanges to Block Russian Users

Ukraine's Ministry of Digital Transformation is sending authoritative letters to 8 cryptocurrency exchanges, requesting them to halt servicing Russian users due to the fact that of concerns that integer currencies are being utilized to evade sanctions.

The ministry is reaching retired to Coinbase, Binance, Huobi, KuCoin, Bybit, Gate.io and Whitebit, on with Ukrainian speech Kuna, according to a database shared with CoinDesk.

The letters are being sent aft Mykhailo Fedorov, Ukraine's vice premier curate and curate of integer transformation, connected Sunday nighttime asked each large crypto exchanges to block addresses of Russian users.

Global crypto speech Binance told CoinDesk that it had nary plans to unilaterally prohibition Russian users from the platform.

"However, we are taking the steps indispensable to guarantee we instrumentality enactment against those that person had sanctions levied against them portion minimizing interaction to guiltless users. Should the planetary assemblage widen those sanctions further, we volition use those aggressively arsenic well,” a Binance spokesperson told CoinDesk.

The U.S. Treasury connected Monday greeting moved to add regulations to thwart the evasion of sanctions by Russians arsenic the state continues its aggression toward Ukraine. The caller regulations prohibit the "deceptive oregon structured transactions oregon dealings to circumvent immoderate United States sanctions, including done the usage of integer currencies oregon assets oregon the usage of carnal assets."

A typical from the Ministry of Digital Transformation successful Ukraine told CoinDesk that the letters petition the listed cryptocurrency exchanges to halt enactment for the Russian ruble, ruble spot pairs and fiat gateways, including Russian outgo systems. The ministry is besides asking the exchanges to artifact each Russian customers.

In a statement, Coinbase said it won't beryllium instituting immoderate broad bans connected transactions involving Russian addresses, but volition artifact those accounts oregon transactions that whitethorn impact sanctioned individuals oregon entities. Coinbase said its "mission is to summation economical state ... A unilateral and full prohibition would punish mean Russian citizens."

Kraken CEO Jesse Powell expressed akin sentiments last nighttime erstwhile explaining wherefore his speech wouldn't beryllium freezing the accounts of its Russian clientele unless legally required to bash so.

A typical from KuCoin sent the following: "As a neutral platform, we volition not frost the accounts of immoderate users from immoderate state without a ineligible requirement. And astatine this hard time, actions that whitethorn summation the hostility to interaction the rights of guiltless radical should not beryllium encouraged."

Meanwhile, Michael Chobanian, the laminitis of Ukrainian crypto speech Kuna, said Russian users person already been blocked from the platform.

Bybit told CoinDesk it had not been contacted by the ministry. Huobi, Whitebit and Gate.io person not yet responded to requests for comment.

UPDATE (Feb. 28 22:25 UTC): Adds comments from Coinbase and Kraken.

UPDATE (Mar 1. 10:56 UTC): Adds remark from Kuna.

UPDATE (Mar 1. 14:32 UTC): Adds remark from KuCoin.

UPDATE (Mar 1. 16:10 UTC): Adds remark from Bybit.