Top Crypto Exchanges Accused of Allowing Sanctioned Russian Banks to Use Their Networks
Blockchain analytics firm Inca Digital has reported that two popular crypto exchanges, Huobi and KuCoin, are being criticized for not adhering to the sanctions placed on Russia following its invasion of Ukraine.
Inca Digital stated that the exchanges did not take measures to prevent sanctioned Russian banks from using their respective peer-to-peer networks, with Tether frequently being used in these transactions.
Inca Digital CEO Adam Zarazinski warned that this might be a breach of US and European restrictions.
Binance was also mentioned in the report for allegedly offering Russian users “various means” to purchase cryptocurrencies on its exchange.
However, Binance has refuted the claims and asserts that it strictly enforces know-your-customer laws.
The report also disclosed that ByBit allows users to convert Russian rubles into cryptocurrencies via its peer-to-peer market and fiat deposits.
The Know Your Customer rule mandates that businesses confirm the identities of their customers to stop illegal activities, including money laundering and terrorism funding.