Ukraine has increased the pressure on cryptocurrency exchanges to freeze Russian accounts as they threaten exchanges like Binance to make legal demands
Ukrainian demands that cryptocurrency exchanges ban Russians from the cryptocurrency sector
As the Russian-Ukrainian conflict continues, Ukrainian officials have announced preparations to issue legal demands to cryptocurrency exchanges, ordering them to freeze the accounts of Russian citizens.
Ukraine has turned to cyber warfare in an attempt to keep Russia out of the burgeoning crypto economy.
The announcement of Ukraine’s request prompted a response from cryptocurrency exchanges, who maintained that Russian user accounts could not be frozen until there was a legal requirement. Users’ accounts on cryptocurrency exchanges would not be frozen arbitrarily at the request of Ukraine.
Access to cryptocurrencies for Russian users could be restricted, which would weaken the crypto economy and reduce the means of financing operations within the nation. Despite the legal pressure from the Eastern European country, it is possible that cryptocurrency exchanges will be unable to comply.
It is believed by Ukraine’s Ministry of Digital Transformation that there is no way to determine who is sponsoring the war. Ukraine must take the necessary steps to prevent Russian users from accessing their accounts and obtaining finance through cryptocurrency transactions.
Traders don’t have to be concerned about losing access to cryptocurrency
Cryptocurrency consumers do not need to be concerned about being caught up in a wealth confiscation scheme, according to Jesse Powell, the co-founder, and CEO of Kraken. Powell expressed his displeasure with Ukraine’s decision to issue legal demands to cryptocurrency exchanges.
As a result of Russia’s invasion of Ukraine, the volume of cryptocurrency trade on Ukrainian exchanges has increased dramatically. The use of cryptocurrency was made legal in the Eastern European country just a few weeks ago.
On the first day of the Russian assault, trading volume on the cryptocurrency exchange Kuna increased by more than 200 percent in a single night.
The trade volume on Kuna crossed $5 million in a single day, while the Russian Ruble and Ukrainian Hryvnia plummeted.
In an interview, Michael Chobanian, the company’s creator, stated,
We don’t trust the government. We don’t trust the banking system. We don’t trust the local currency. The majority of people have nothing else to choose apart from crypto.
