Two major crypto exchanges failed to block sanctioned Russians
-
Loading... - Simeon Bok
- 27 Mar 2023
- 62 Views
- 0 Like
- 0 Comment
A new report reveals continued limits of Washington’s attempts to cut off Russian institutions and oligarchs.
The exchanges still allow traders to transact with debit cards issued by sanctioned Russian banks, including Sberbank, on their peer-to-peer platforms.Two of the world’s largest crypto exchanges failed to take steps to prevent sanctioned Russian banks from using their platforms, according to a report from the blockchain analytics firm Inca Digital provided to POLITICO.
Huobi and KuCoin, both based in Seychelles, still allow traders to transact with debit cards issued by sanctioned Russian banks, including Sberbank, on their peer-to-peer platforms, according to the report, which will be published later today.
While neither exchange actually accepts funds from the blacklisted banks, letting crypto buyers trade with each other using accounts with sanctioned institutions represents a “direct violation of U.S. and European sanctions with a little bit of a loophole,” Inca CEO Adam Zarazinski said in an interview. Huobi and KuCoin did not respond to requests for comment.
One year after Russia launched its full-scale invasion of Ukraine, a conflict that has since killed hundreds of thousands of soldiers on both sides and forced millions of Ukrainians from their homes, the news reveals the continued limits of Washington’s attempts to cordon off Russian institutions and oligarchs from the broader financial system.
“Despite the bogus claims from crypto lobbyists, this is further evidence of crypto being the currency of choice for illicit finance, including by Russians looking to evade sanctions,” Sen. Elizabeth Warren (D-Mass.) said in a statement
Policymakers like Warren have warned for the better part of a year that crypto markets represent a gaping vulnerability in the U.S.’ sanctions on Russia. While Treasury officials say they’ve seen little evidence that digital assets can be used to duck sanctions at scale, the U.S. has cracked down on services — including Russian exchanges and so-called mixing services that make transactions more difficult to track — in an attempt to shut off the spigot. Read More…
