Binance CEO Zhao suggests that the exchange may still accept Russian users

Russian citizens’ accounts at EU-based crypto services have been frozen for the last month as the EU tightened sanctions against Russia in response to the ongoing conflict in Ukraine.

The new rules expanded an earlier ban on digital wallets containing more than 10,000 euros in assets for Russian citizens. The latest iteration of the sanctions, implemented on October 6, prohibited crypto asset wallet, account, or custody services to Russian citizens, residents, and legal entities, “regardless of the amount.”

Major European-based cryptocurrency businesses, such as LocalBitcoins, Crypto.com, and Blockchain.com, promptly notified Russian users that their accounts would be terminated. Kraken, a US-based exchange with European operations, likewise barred Russian residents’ accounts.

Unsurprisingly, given such a wide approach, sanctions appear to have harmed Russians who did not support the war in Ukraine and did not live in Russia.

Because there have been no similar measures regarding bank accounts for Russian citizens residing in Europe, cryptocurrency appears to be where these sanctions have hit the hardest. Furthermore, while the EU is gradually reducing its reliance on Russian oil and gas, the latest sanctions still allow European operators to assist Russia in certain cases in transporting its oil for sale in third countries.

Zhao is perplexed by the focus, saying during his press conference, “Why are the sanctions harder on crypto services than on banks?”