Major Crypto Exchanges Not Too Happy With Ukraine’s Ban On Crypto For Russians

As per crypto Redditers, Ukraine on Sunday requested major crypto exchanges to block addresses linked to Russia and Belarus, amid growing speculation that Moscow could use the platform to subvert recent economic sanctions. However, the request was met with criticisms across the crypto community.

The Vice Prime Minister and Minister of Digital Transformation of Ukraine, Mykhailo Fedorov, tweeted out this request on Sunday, 27 Feb 2022. The appeal to freeze Russian addresses to cryptocurrency trading platforms came shortly after the United States and its allies blocked several Russian banks from the SWIFT transaction system. A bulk of Moscow’s offshore assets were also frozen in this process.

Fedorov’s comments come during increasing concerns that Russia could use crypto to fund international trade, after being blocked from most international platforms. The country is one of the largest crypto holders in the world, representing about 12% of overall market capitalization, Coingape notes. While the reasons for this move may not be unfounded, it’s within reason that this action faced major backlash from the Russians as well.

The founder of Kuna Exchange, Michael Chobanian, had previously stated, “the majority of people have nothing else to choose apart from crypto. People have cash, and they want to buy crypto, but there is a very limited supply at the moment.” One such Ukrainian, who was rescued by the graces of cryptocurrencies noted their experience on Twitter, elucidating that while he’d been safe physically in Kazakstan, all their savings were gone without access to credit cards, and in the midst of this personal financial crisis, cryptocurrencies were the only money they still held.

Binance, Kraken, And Others Respond

Kraken Chief Executive Officer Jesse Powell’s response said that while he respected the sentiment, considering Russia’s invasion of Ukraine, he would not be blocking Russian users (Kraken is one of the largest crypto platforms in the country). Binance, the world’s largest crypto exchange, said it was taking actions against the entities blacklisted by the West, all the while minimizing the impact to innocent users, the Wall Street Journal reports.

Twitterers Fight Back With Hastag #NYKNYC

Following this decision to freeze wallets, a growing push for decentralized wallets was observed on social media, under the #NYKNYC- “Not your keys, not your coins.”It should be noted that such wallets are not listed on any exchange, and as such, cannot be effectively regulated by any government.

Sneh Dokania is an Economics major student with an inquisitive disposition seeking to articulate facts, information and news stories in a candid manner on Clout News.

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