Major South Korean cryptocurrency exchanges have introduced restrictions for Russian users, effectively joining western sanctions over Moscow’s military invasion of Ukraine. This includes blocking IP addresses that originate from the Russian Federation.
The largest Korean exchange may deny Russia withdrawals
Several crypto trading platforms in South Korea, including the country’s largest, are banning access from Russian IPs, the Yonhap news agency reported on Thursday. Upbit, Korea’s leading digital asset exchange, announced it could reject withdrawal requests related to Russia. The exchange elaborated on:
We’ve blocked subscriptions by users in countries which are at high risks of money laundering, in line with the guidelines of the Financial Action Task Force.
Bithumb and Korbit have also blocked Russian IP addresses, according to the report. On Wednesday, 20 Russian accounts were frozen by the latter.
As the United States and allies impose sanctions upon Russia in waves, such as export restrictions and the expulsion of Russian banks SWIFT (interbank payments system), the United States is imposing restrictive measures on South Korea.
As Russia becomes more isolated from global financial systems, fears that Russia might use cryptocurrency to avoid western sanctions are increasing. Members of the G7 and the European Union are working together to block Russia’s use of digital assets to avoid restrictions.
Ukraine has been asking crypto exchanges for Russian accounts to be frozen, but they failed to get major platforms such as Binance or Kraken to agree. Kyiv government also works to expose the crypto wallets of politicians from Russia and Belarus.
The Ukrainian authorities are also actively looking to raise cryptocurrency donations for their defense budget. The country, including non-government organizations, has already raised tens of millions of dollars’ worth of crypto in various currencies.
In response to the crisis, international cryptocurrency community funded humanitarian efforts. Binance, the world’s largest exchange, has pledged $10 million while also facilitating assistance from third parties through crowdfunding.
You can support Ukrainian families, children, refugees, and displaced people by donating BTC, ETH, and BNB to Binance Charity’s Ukraine Emergency Relief Fund.
Are you expecting crypto exchanges to place restrictions on Russian users in countries other than Russia? Please leave your comments below.
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