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Binance has tightened its grip on Russian users

Updated: Jul 25, 2024
Published: Apr 21, 2022
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Following the latest wave of European Union sanctions, crypto exchange Binance is enforcing stricter Know Your Customer (KYC) checks for Russian users.

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Binance limits crypto services to Russian users

Following the EU's fifth package of anti-Russia restrictions, Binance announced today in a blog post that it will limit services for "Russian nationals or natural persons residing in Russia, or legal entities established in Russia" with crypto holdings exceeding $10,900. Users who fit this description will be required to submit a proof-of-address check. According to the blog post, users who must now undergo checks in accordance with the new restrictions will be placed in "withdrawal-only mode," which means no deposits or trading will be permitted.

Russians living outside the country who can provide proof of address, as well as those living within Russia but with less than €10,000, will be unaffected by the changes. Furthermore, Russian nationals, as well as individuals and entities within the country, with holdings that exceed the threshold and open futures and derivatives positions, will be given 90 days to close them. They will not be permitted to create new positions.

Sanctions by the EU

On April 8, the EU announced its most recent sanctions package. It included crypto wallets with Russian ties as a means of "closing potential loopholes" in the broader set of sanctions imposed on Russia in the midst of its weeks-long invasion of neighboring Ukraine. Ukraine's deputy minister of digital transformation, Alex Bornyakov, praised Binance's changes in a tweet.

Binance even had plans to expand its services in Russia earlier this year, hoping for a progressive regulatory approach from Russia that could influence the approach of its neighboring countries, but the recent invasion appears to have slowed these plans.

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