Binance blocked the Kremlin spokesman’s daughter’s account after she attempted to use the crypto exchange following Russia’s economic sanctions.
Binance, a cryptocurrency exchange, is taking additional steps to prevent the Russian government from using cryptocurrency to mitigate the impact of sanctions.
Binance has shut down several accounts linked to relatives of senior Kremlin officials in the two months since Russia launched military action in Ukraine, according to Bloomberg on Thursday.
Elizaveta Peskova, the daughter of Russian President Vladimir Putin’s spokesman Dmitry Peskov, and Polina Kovaleva, the stepdaughter of Foreign Minister Sergei Lavrov, were among those affected, according to the report. Binance also stated that it had blocked Kirill Malofeyev, the son of Konstantin Malofeyev, a Russian oligarch previously charged with violating US sanctions.
“Proud to be a part of this team that makes a real difference,” Chagri Poyraz, Binance’s newly appointed global head of sanctions, wrote on his LinkedIn page about the company’s latest measures.
Poyraz stated that Binance blocked Peskova on March 3rd when she attempted to use the exchange via a third-party brokerage. On March 11, the US Treasury Department sanctioned her as part of sanctions against “Kremlin elites, leaders, oligarchs, and family for enabling Putin’s war against Ukraine.”
Peskova later expressed her outrage at the Western sanctions, calling them “totally unfair and unfounded.” “I was really surprised because it seems strange to impose sanctions on someone who is 24 years old and has nothing to do with the situation,” she explained. Peskova’s most recent Instagram post, dated March 12, contains only one word: “Peace.”
Binance, according to Poyraz, continues to monitor its platform for additional people associated with sanctioned individuals who may be using its services.
“What distinguishes our compliance screening operations is that they are ‘proactive,’ aiming to detect and deter financial crime risk before any regulatory or legal action is taken against these individuals or entities,” he explained.
Binance implemented a set of restrictions for Russian nationals or residents of Russia on April 21, limiting trading on accounts holding more than 10,000 euros, or $10,800. Binance CEO Changpeng Zhao previously stated that while the company will comply with sanctions, it will not “unilaterally freeze millions of innocent users’ accounts” as a result of Western sanctions against Russia.
Aside from reinforcing Binance’s eagerness to comply with sanctions, the latest report suggests that family members of major Russian officials are heavily involved in cryptocurrencies such as Bitcoin (BTC). This is despite the Bank of Russia’s hostility toward Bitcoin and refusal to accept crypto investment in the country.
It’s also worth noting that some Russian officials, as well as their spouses and minor children, are prohibited from investing in cryptocurrency at all under Russian law.
