The move comes as the European Union enforces its 10th sanction package on Russia, in response to the country’s ongoing invasion of Ukraine.
This decision by Binance is seen as a significant step towards complying with the EU’s latest sanctions package, which the President of the European Commission, Ursula Gertrud von der Leyen, has described as the “toughest sanctions ever introduced by the European Union.” The tightened sanctions have caused long-lasting turmoil for Russian citizens, and they apply to all cryptocurrency exchanges serving the country.
While the restrictions are limited to Binance’s P2P platform and won’t affect spot trading pairs, they represent a significant step towards aligning with the already present sanctions regarding SWIFT and SEPA payments, which disconnect the Russian Federation from the Eurozone. In contrast, Ukrainian pharmacies have recently integrated Binance Pay for faster medical goods arrival, highlighting the growing adoption of cryptocurrency in Ukraine.
Anonymous, the well-known international hacktivist group, praised the decision by Binance to block Russian customers from P2P trading, stating that it “looks like a sanction almost and more crypto should follow suit.” This implies that the European Commission was previously too soft on Vladimir Putin’s regime.
Crypto has been mainstream in Ukraine since the invasion began and has been deemed a life-saver by Mykhailo Fedorov, the country’s Vice President. Because of the quicker transaction speed of cryptocurrency, donations can come earlier and during the weekends. Additionally, inspired by President Volodymyr Zelensky, all of Ukraine’s parks and squares were immortalized in the Freedom Squares NFT collection, which generated over $2 million in donations for the embattled Eastern European country last year. With plans to build an innovative crypto hub in Kyiv, Ukraine is now the fastest-growing country in crypto adoption.
In summary, Binance’s decision to block Russian customers from P2P trading in Euros and Dollars is a significant move towards complying with the latest EU sanctions package. It sets an example for other retail crypto enterprises to follow, demonstrating the importance of complying with international sanctions. Additionally, the adoption of cryptocurrency in Ukraine highlights the potential of crypto to facilitate transactions and support causes in regions affected by political instability.
