By John Meyer, financial consultant. Eurasia Business News, March 6, 2022
Crypto exchange platform Binance will implement restrictions against Russian banks that have fallen under Western sanctions. These banks are VTB, Rossiya, Otkritie, Novikombank, Promsvyazbank, Sovcombank and VEB.RF. At the same time, Binance assured that it does not want to freeze the accounts of “millions of users”, but is ready to comply with new international sanctions.
“Binance follows international sanction rules strictly. At Binance, we have assembled a dedicated global compliance task force, including world-renowned sanctions and law enforcement experts, […] we take sanctions very seriously. Our compliance team has more than 500 people globally and close to half of them are directly involved in sanctions control work such as anti-money laundering, name screening, Know Your Customer onboarding and on-chain monitoring.”, announced Binance in a blog post.
Unilaterally denying people access to their cryptocurrency wallet because they use Russian sanctionned bank credit cards would be contrary to the very purpose of the cryptocurrency’s existence. However, the exchange platform clarified that in the event of the expansion of sanctions by the international community, Binance will implement them.
On March 2, the EU officially disconnected seven sanctioned Russian banks from SWIFT international payment system. The restrictions will come into force in 10 days, on March 12. From this day, it will also be forbidden to sell, supply, transfer or export euro banknotes to Russia, follows from the EU regulation.
Russians have now few possibilities to hedge their money against inflation and currency fall. They can’t use Russian payment card to buy crypto through the Binance platform, they cannot use Paypa anymore since March 5, and their Visa and Mastercard cards issued in Russia don’t work anymore outside the country. So far, they still can buy dollars and physical gold.
Read also : How to invest in gold
The financial situation of many Russian households should deteriorate in coming weeks, because of Western sanctions, high inflation and falling ruble.
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