Binance and ByBit are also on the list of not complying with the US embargo when implicitly serving Russian customers to trade crypto.
Exchanges Huobi and KuCoin continues to provide services to Russian users despite the embargo, according to the newspaper Politico.
Report from Inca Digital is Politico The citation shows that customers of embargoed Russian banks can still use debit cards for P2P (Peer-to-Peer) transactions on the two exchanges.
Although Huobi and Kucoin do not directly receive funds from the other banks, Inca Digital CEO Adam Zarazinski still asserted that the two exchanges violated international sanctions of the US and Europe.
The report also pointed out shortcomings in the policy of the Binance, as the exchange offers Russian users “many ways” to buy crypto on its P2P marketplace. In response, Binance denied the allegation.
The exchange confirmed the notice to block fiat deposits originating from Russian payment cards in March 2022. Binance is also committed to always requiring thorough KYC and enforcing strict sanctions.
On the other hand, ByBit also included in the Inca Digital report. Accordingly, the exchange still allows users to convert between the Russian ruble and crypto via the P2P market and fiat deposits.
But there are still many regulated exchanges, blocking Russian users. Blockchain.com, Crypto.com and LocalBitcoins have been doing this since October last year. Meanwhile, Coinbase didn’t even accept Russian residents before March 2022 and Binance restricted services to Russian users in April 2022.
Sanctions are a powerful tool to help the US increase its influence over hostile countries. However, cryptocurrencies are a great solution to avoid sanctions, because crypto does not operate in the traditional banking system making it difficult for the government to control.