Major Crypto Exchanges Fail to Prevent Sanctioned Russian Banks from Trading, Report Shows
Several major crypto exchanges are under scrutiny after a report revealed that they have failed to prevent sanctioned Russian banks and traders from transacting on their platforms. According to the report, at least two established coin trading platforms continue to allow Russians to use their bank cards in peer-to-peer deals, which effectively enables them to circumvent economic sanctions that have been placed on the country.
The report highlights an increased Russian interest in tether, a cryptocurrency that is pegged to the U.S. dollar. The use of tether allows Russian individuals and organizations to exchange their rubles for a stable currency that is not subject to the fluctuations of the Russian economy.
The Biden administration has been vocal about its concerns regarding the use of cryptocurrencies to avoid sanctions. In February of 2022, the administration called on crypto exchanges to help ensure that Russian individuals and organizations are not using virtual currencies to circumvent the sanctions that have been placed on them.
Chagri Poyraz, the global head of sanctions at Binance, one of the exchanges mentioned in the report, stated that the exchange is a full-KYC platform and was the first major exchange to implement EU crypto-related sanctions. Poyraz added that Binance’s P2P team is closely monitoring transactions to ensure compliance with all relevant laws and regulations.
The report is likely to raise further questions about the ability of crypto exchanges to police their platforms effectively. Despite the growing regulatory scrutiny, some exchanges appear to be struggling to prevent sanctioned individuals and organizations from using their services.
Cryptocurrencies have long been associated with illicit activities, and the report is likely to fuel concerns about their potential use for money laundering and other criminal activities. As the crypto industry continues to grow and evolve, regulators and law enforcement agencies will need to work together to ensure that the technology is not used to facilitate illegal activities or evade economic sanctions.