Ukraine has increased the pressure on cryptocurrency exchanges to freeze Russian accounts. The Eastern European country has resorted to a crypto war threatening exchanges like Binance to make legal demands.
Ukraine demands that exchanges exclude Russians from the crypto economy
As the Russian-Ukrainian war rages on, regulators in Ukraine have unveiled plans to present cryptocurrency exchanges with legal demands to freeze accounts of Russians. Ukraine has resorted to crypto warfare to exclude Russia from the budding crypto economy.
Cryptocurrency exchanges responded to the news of Ukraine’s request and argued that Russian user accounts cannot be frozen unless there is a legal requirement. Crypto exchanges would not unilaterally freeze user accounts on Ukraine’s demand.
Restricting cryptocurrency access for Russian users could choke the crypto economy, reducing the means of financing activities within the country. Despite a legal push from the Eastern European country, crypto exchanges may be unable to comply.
Ukraine’s Ministry of Digital Transformation believes that there is no means to identify who is financing the war. Freezing Russian users’ accounts and pulling their access to financing through cryptocurrencies is a necessary measure for Ukraine.
Traders don’t have to worry about losing crypto access
Jesse Powell, co-founder, and CEO of Kraken argued that cryptocurrency users do not have to worry about being caught in wealth confiscation. Powell condemned Ukraine’s move to send legal demands to crypto exchanges.
Cryptocurrency trading volume on Ukrainian exchanges exploded as Russia invaded the country. Cryptocurrencies were legalized in the Eastern European country last month.
On day one of Russian aggression, trading volume on the crypto exchange Kuna witnessed over 200% spike overnight.
The trade volume on Kuna crossed $5 million in a single day, while the Russian Ruble and Ukrainian Hryvnia plummeted.
Michael Chobanian, founder of Kuna said in an interview,
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.
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