• Two of the world’s largest crypto exchanges, Huobi and KuCoin, have reportedly been providing services to customers of sanctioned Russian banks.
• The exchanges allegedly failed to take proper measures to block traders using debit cards issued by sanctioned Russian banks.
• Binance, ByBit, and Tether Limited are also mentioned in the report as potential enablers of transactions that violate US and European sanctions.
Huobi & KuCoin Accused of Enabling Sanctioned Banks
Huobi and KuCoin, two of the world’s largest crypto exchanges, have been accused in a report of enabling Russian banks to break sanctions. The blockchain analytics firm Inca Digital has provided research indicating that these exchanges have not taken adequate measures to block traders from transacting with debit cards issued by sanctioned Russian banks such as Sberbank on their peer-to-peer platforms. Adam Zarazinski, CEO of Inca Digital said that this could be a violation of US and European sanctions.
Binance & ByBit Also Mentioned In Report
The report also mentions Binance and ByBit as potential enablers of transactions that violate US and European sanctions. Binance has denied the allegations saying it fully imposes KYC regulations even taking extra steps to filter communication between users. ByBit allows users to convert Russian rubles into crypto through its over-the-counter trading desk or its peer-to-peer market after depositing fiat currency via an online digital wallet or local bank card including any Russian-issued card.
Exchanges Curtailed Operations In Russia Due To Sanctions
It is worth noting that many exchanges had officially curtailed their operations in Russia due to imposed sanctions claiming they had blocked users from Russia and prevented them from opening new accounts. This comes as Friday marked the first anniversary of Russia’s full fledged ban on cryptocurrency payments for goods and services within its borders.
Kucoin & Huobi Executives Respond
KuCoin executives dismissed the report while Huobi advisor Justin Sun did not address the claim specifically but instead said “Huobi is committed to operating within regulatory frameworks across all jurisdictions we operate in”.
In conclusion, while these accusations remain unproven at this time, it is important for crypto exchanges around the world to ensure they are compliant with all applicable laws so as not be implicated in such potentially illegal activities going forward.