March 9, 2022
By Sharan Kaur Phillora
Following Russia’s invasion of Ukraine, many cryptocurrency exchanges have relocated outside of the country. However, A Ukrainian government official warned significant cryptocurrency exchanges that still remain in Russia, would face a public backlash.
Here’s everything we know:
- In an interview with Reuters, Alex Bornyakov, Ukraine’s deputy minister for digital transformation, said, “Private companies decide for themselves where they stand, what values they support and what benefits they have.”
- He further added, “Even those who have decided to stay – the company will eventually ban their products because we see this huge support from the citizens, the people of the world.”
- Despite the warning, Binance, the world’s largest exchange, and US firms Coinbase Global Inc and Kraken said they would stay in Russia, rejecting calls from Ukraine for a blanket ban on users in the country.
- For its military assault in Ukraine, Russia has been subjected to the West’s unprecedented harsh punitive measures. The response from companies varied, with some companies taking action as required by law and others taking voluntary action. PayPal, Visa, Mastercard and other traditional payment companies have already suspended their services in Russia. The Ukrainian Deputy Prime Minister had called on them and crypto firms and other businesses to cut ties with Russia.
- However, crypto exchanges have not consented to calls for a blanket ban on Russian users, a move experts say weakens attempts to isolate Moscow.
- Some crypto exchanges have said companies should not unilaterally withdraw their services as a reason to stay in Russia. “They can stay, but the publicity of their actions will be very bad,” Bornyakov said of the exchanges, adding that Kyiv does not see the use of crypto for sanctions-busting as an imminent threat. “I believe they will change their minds.”
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
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