The Ukranian government has asked that all cryptocurrency transactions for Russian accounts be frozen, but the major exchanges are all refusing to do so.
As Vice reports, the request came via the Twitter account of Vice Prime Minister Mykhailo Fedorov, who said, “It’s crucial to freeze not only the addresses linked to Russian and Belarusian politicians, but also to sabotage ordinary users.”
In response, Binance, Coinbase, Kraken, and KuCoin have all said they will not comply with the request. A Coinbase spokesperson told Vice:
“At this time, we will not institute a blanket ban on all Coinbase transactions involving Russian addresses. Instead, we will continue to implement all sanctions that have been imposed, including blocking accounts and transactions that may involve sanctioned individuals or entities.”
The statement goes on to point out that, “A unilateral and total ban would punish ordinary Russian citizens who are enduring historic currency destabilization as a result of their government’s aggression against a democratic neighbor.”
Talking to CNBC, Binance said it’s, “taking the steps necessary to ensure we take action against those that have had sanctions levied against them while minimizing impact to innocent users.”
Johnny Lyu, CEO of KuCoin, told the publication:
“As a neutral platform, we will not freeze the accounts of any users from any country without a legal requirement. And at this difficult time, actions that increase the tension to impact the rights of innocent people should not be encouraged.”
Jesse Powell, CEO of Kraken, pointed out his exchange, “cannot freeze the accounts of our Russian clients without a legal requirement to do so.” Meanwhile, cryptocurrency is playing a major role in both funding Ukraine’s defense against Russia and supporting the NGOs and volunteer groups aiding the country.
