25. Februar 2023

Huobi, KuCoin, Binance Let Russians Access Crypto Trading Platforms

• Popular crypto exchanges KuCoin and Huobi have come under fire for allegedly allowing customers of sanctioned Russian banks to access their trading platforms.
• Binance was also reportedly allowing Russians to convert local currency to crypto without KYC checks.
• Tether (USDT) is being used to facilitate the transactions and provide banking services to sanctioned banks.

Sanctions Imposed On Russia

The Seychelles-based crypto exchanges, KuCoin and Huobi, have come under fire for failing to comply with the sanctions imposed on Russia in light of its conflict with Ukraine. These popular exchanges are considered amongst the world’s largest crypto trading platforms.

Exchanges Facilitating Transactions

Reports indicate that both Huobi and KuCoin allowed customers of sanctioned Russian banks to continue trading on their platforms via debit cards issued by the same banks. Furthermore, crypto data analytics firm Inca Digital corroborated this report in an interview with Bloomberg. It was revealed that Russians often use Tether (USDT) as a means of moving funds out of the country, which is facilitated by these exchanges. USDT has also been used by them to provide banking services to the sanctioned banks.

Binance Allowing Crypto Conversions

The world’s largest cryptocurrency exchange, Binance, was also named as one platform that catered to Russian nationals looking for converting local currency into cryptocurrency without completing know-your-customer (KYC) checks up to $10,000 worth of transactions. The head of global sanctions at Binance stated that it was a full KYC platform while being the first major crypto exchange to comply with sanctions imposed by the European Union.

Violations Of Sanctions

Inca Digital CEO Adam Zarazinski noted that these exchanges violated the sanctions imposed by Europe and America through such transactions being conducted on their platforms. He further mentioned that Binance uses its OTC trading desk and peer-to-peer marketplace for facilitating such conversions without any KYC checks taking place whatsoever.

Conclusion

Despite claiming full KYC compliance, some large crypto exchanges are alleged to be violating international sanctions against Russia by allowing users from sanctioned Russian banks access their trading platforms as well as convert currency into cryptocurrency without proper verification procedures taking place beforehand