The global head of sanctions at Binance said they continually check for sanctioned individuals to avoid regulatory action against them. Binance restricts its services to Russians having over USD 10,885 worth of crypto assets and assigns them withdrawal-only status.
Given that the conflict between Ukraine and Russia has not yet ended, Binance decided to take measures. Specifically, the online exchange blocked the accounts of relatives of Kremlin officials.
That is just one more move by a long list of organizations to force Russia to withdraw from Ukraine. The blocking of Binance accounts includes all those people somehow related to the ruling regime in the Kremlin.
How Binance Carries Out the Blocking of Russian Accounts
The cryptocurrency exchange has closed several accounts of people with family ties to top Kremlin officials in the last few months. The financial news agency Bloomberg released the details about those affected by that measure.
Binance blocked Polina Kovaleva, the stepdaughter of Russian Foreign Minister Sergei Lavrov, and Elizaveta Peskova, the daughter of Dmitry Peskov, the spokesman of Vladimir Putin.
When Peskova tried to use the exchange through a third-party brokerage, they closed her account. Then the US Treasury Department sanctioned her for her ties to Kremlin elites and her alleged contribution to the war against Ukraine.
After that, Peskova expressed her anger against the Western sanctions, saying they were unfair. She said she was surprised by the sanction as she was young and had nothing to do with the situation.
Another blocked person is Kirill Malofeev, the son of Konstantin Malofeev, a Russian tycoon accused of financing Russian separatists in Crimea.
Chagri Poyraz, global head of sanctions at Binance, stated that they continually check for people related to sanctioned individuals. He said they seek to detect and avoid financial crime before any regulatory or legal action occurs against them.
Other Restrictions and Controversies of the Cryptocurrency Exchange
In late April, Binance announced that it was restricting its services to Russian people having over USD 10,885 worth of crypto assets. For that reason, the exchange assigned them withdrawal-only status and blocked them from accepting deposits or engaging in trading activities.
Those concerned about Russians using cryptocurrencies to circumvent sanctions have applauded Binance for those actions. However, others believing that such restrictions may be too harsh have criticized the exchange.
Binance has received accusations for allegedly forming close ties with the financial intelligence unit of Russia. However, they have clarified that they are only complying with the international sanctions imposed by the United States and the European Union.
Reuters recently stated Binance had provided data about their users to opposition leader Alexei Navalny, but the exchange denied the claims. Russia pressured those platforms operating in the territory due to the development of a regulatory framework, but the talks ended when the invasion of Ukraine started.
The conflict between Russia and Ukraine has affected the price of cryptocurrencies and stocks worldwide. It has even led exchanges like Binance to sanction the people related to Kremlin officials by blocking their accounts.
By Alexander Salazar
