Binance has blocked cryptocurrency accounts belonging to relatives with ties to the Russian government. Binance has suspended accounts associated with relatives of prominent Kremlin officials. Among those impacted is the daughter of Russian President Vladimir Putin’s spokesman, Dmitry Peskov. Binance also prohibits Kirill Malofeyev, the son of Konstantin Malofyev, a Russian oligarch accused of breaking US sanctions.
Binance has suspended several accounts associated with relatives of high-ranking members of Russian President Vladimir Putin’s cabinet. The move comes as sanctions against Russia continue to erode in response to the country’s armed invasion of neighboring Ukraine.
Polina Kovaleva, Foreign Minister Sergei Lavrov’s stepdaughter, and Elizaveta Peskova, Kremlin spokesman Dmitry Peskova’s daughter, are among those who have been denied entry in the two months since the Russian military crossed the Ukrainian border.
Kirill Malofeev, the son of Russian oligarch Konstantin Malofeev, was also barred from using Binance. Washington accuses Russia of backing pro-Russian separatists in Ukraine.
Malofeev is a Putin supporter who has been sanctioned by the US and the EU and is wanted by Ukrainian authorities for his role in the Donbas conflict.
The accounts were closed when Binance reduced services to Russian customers earlier this month to comply with the European Union’s current round of sanctions. The limits apply to Russian nationals, residents, and legal entities with crypto assets worth more than €10,000 ($10,800) on the site.
On March 3, Binance announced that it has barred Peskova from utilizing the exchange through a third-party brokerage. The following week, she was sanctioned by the US Treasury Department, according to the publication.
Kovaleva’s account was cancelled on March 24, the day she was sanctioned by the UK. Malofeev was designated by the US Treasury on April 20, according to the business, and his Binance accounts were shuttered this week.
According to the platform’s global head of sanctions, the crypto exchange would continue its efforts to identify other individuals who are linked to sanctioned persons. “What defines our compliance screening efforts is that they are ‘proactive,’ attempting to uncover and deter financial crime risk before any regulatory or legal action is taken against these individuals or firms,” Chagri Poyraz was quoted as saying.
The current research suggests that Russian politicians and their families are heavily involved in cryptocurrencies, such as Bitcoin (BTC), in addition to Binance’s desire to obey sanctions.
The Bank of Russia doesn’t accept crypto investments in the nation despite its antipathy towards Bitcoin. It’s also worth mentioning that some Russian officials, as well as their spouses and children, are prohibited from investing in cryptocurrency at all under Russian legislation.
What are your thoughts on Binance’s decision to block accounts linked to the relatives of sanctioned Russian officials? Please leave your opinions in the space below.
Also read: Residents of three major Chinese cities have started paying their taxes with digital money
