Russian users limited from crypto trading as Binance introduces sanctions

Having refused to introduce blanket bans on Russian accounts just last month, mammoth crypto exchange Binance has now been obliged to adjust its stance following new restrictive measures by the EU.

The EU announced its fifth package of sanction measures on 5 April, which included “six pillars” of pressure across import, export and other financial activities with Russia.

Previous calls for crypto exchanges to halt account activity by Russian users - due to concerns that crypto exchanges could be used to bypass sanction measures - had been ignored by Binance.

But the company has now issued a notice of “changes of services to users in Russia” detailing that its services will be limited for Russian nationals, persons residing in Russia, or legal entities established in Russia, with crypto assets in excess of €10,000.

Any accounts that classify under the new restriction will be put into "withdrawal-only mode” with “no deposits or trading” permitted on these accounts. These account holders will be given 90 days to close out their positions, with no new positions to be added, Binance has mandated. 

The crypto exchange now requires customers to complete a proof-of-address verification form to ensure compliance with the new rules.

The exchange added: “Binance must continue to lead the industry in implementing these sanctions. We believe all other major exchanges must follow the same rules soon.”