- Binance will limit services for Russian accounts to withdrawals only.
- The EU recently implemented the fifth package of sanctions against the country.
- The IMF predicted an 8.5% contraction in Russia’s GDP for the year 2022-23.
In an announcement, the world’s largest cryptocurrency exchange, Binance, said it will no longer provide certain services to Russian account holders on the platform.
The only option that will be open to Russian nationals will be to withdraw money from their account.
Binance opposes Russia
Ever since the country started invading Ukraine, it has faced backlash and harsh sanctions from countries around the world. The European Union, in particular, has been ruthlessly tough on Russia.
The EU recently imposed the fifth set of sanctions on the country, and one of the most notable sanctions was an extensive ban on deposits in crypto wallets.
So, following the sanctions, Binance officially announced the same limitations for Russians on the exchange today. However, the exchange did not outright ban all Russian accounts.
Only those who have crypto assets exceeding the value of 10,000 euros will be subject to these restrictions.
As a result, these users will be prohibited from making new deposits and trading on all fronts – spot, futures, custodial wallets, and staked and earned deposits.
They will only be allowed to withdraw their money and close all futures/derivatives positions within the next 90 days.
In line with the announcement, Binance said,
“While these measures are potentially restrictive for normal Russian citizens, Binance should continue to lead the industry in implementing these sanctions. We believe that all other major exchanges should soon follow the same rules.
The exchange finally relented after rejecting Ukraine’s demands to do the same and finding a loophole to only block sanctioned accounts when the White House demanded the same early last month, as reported by FXEmpire. .
Binance also appears to be trying to keep up with popular public opinion after facing intense scrutiny for its recent debacle. Yesterday, Binance and CEO Changpeng Zhao came under fire for debuting their new emojis for Binance-related hashtags on Twitter, as they were in the shape of a swastika.
To make matters worse, the emojis were released on the day coinciding with Adolf Hitler’s birthday, April 20. In response, Binance quickly removed the emojis before issuing a statement and a new design for the emojis.
Well, that was obviously very embarrassing.
We don’t know how this emoji went through multiple layers of review without anyone noticing, but we immediately flagged the issue, removed it, and the new emoji design is rolling out as we speak. .
— Binance (@binance) April 20, 2022
No escape for Russia?
Since the exchange has placed no restrictions on accounts holding less than 10,000 euros, it will come as no surprise if these blocked accounts end up opening new ones with balances below the threshold.
But although crypto is one aspect, the country is still susceptible to economic damage from the other sanctions. The International Monetary Fund (IMF) recently released the country’s GDP projections for the year 2022-23.
While the GDP of countries like India and Saudi Arabia are expected to grow by 8.2% and 7.6%, respectively, the IMF predicts an 8.5% contraction for Russia this fiscal year.
The only other country expected to suffer a worse fate is Ukraine, whose GDP is expected to contract by 35% due to Russia’s attack.