Major crypto exchanges failed to stop sanctioned Russian banks and traders from transacting, according to a blockchain forensics report. According to the analysis, at least two established coin trading platforms continue to allow Russians to use their bank cards in peer-to-peer transactions. It also highlights increased Russian interest in the tether.
Russian traders are still using major cryptocurrency exchanges to circumvent restrictions
Some of the world’s largest digital asset exchanges have failed with measures to prevent sanctioned Russian banking institutions from operating through their platforms, a report by blockchain analytics firm Inca Digital reveals. the first anniversary of Moscow’s invasion of neighboring Ukraine.
According to the research, cited by Bloomberg and Politico, merchants can still use debit cards issued by Russian banks sanctioned by the United States, Canada, United Kingdom and the European Union among others, including Sberbank , state-owned, to trade on the peer-to-peer (PTP) platforms of two Seychelles-based exchanges, Huobi and Kucoin.
Inca CEO Adam Zarazinski explained that while neither accepts funds from blacklisted banks, allowing crypto buyers to trade with each other using accounts with sanctioned institutions represents a “direct violation.” US and European sanctions with a bit of a loophole”. Exchanges are yet to comment on the results.
Binance Offers Russians Ways To Convert Rubles To Crypto, Claims Inca
The survey looked at data from 163 crypto trading platforms, centralized and decentralized exchanges, as well as P2P and OTC (over the counter) service providers. Nearly half of them allow Russian nationals to buy digital currencies, applying different know-your-customer (KYC) requirements, trading limits and geolocation tools. For example, Singapore-based Bybit allows users to convert rubles to crypto on its P2P platform and make fiat deposits, including via “any Russian-issued card.”
Binance, the industry leader by daily trading volume, was also mentioned, with the report identifying potential vulnerabilities. The authors note that the exchange offers “several methods for Russians to convert local currency to crypto,” including through its OTC and P2P marketplace, available to them without KYC checks up to $10,000.
Chagri Poyraz, Global Head of Sanctions at Binance, said the exchange is a “comprehensive KYC platform and was the first major exchange to implement EU crypto-related sanctions…Our team P2P takes the extraordinary extra step of filtering all forms of user-to-user communication to ensure there is absolutely no potential connection to Russian entities through a workaround,” he said. He underlines.
The study also highlights the use of the tether to circumvent Western sanctions against Russia, noting an increase in discussion on Russian social media regarding the use of the stablecoin for remittances. “Tether is frequently used by Russians to transfer money out of the country,” said Inca Digital’s chief executive. Binance and tether have both been under regulatory scrutiny over the past few months.
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