Crypto exchanges Huobi and KuCoin continue to provide services to users of sanctioned Russian banks, according to a Politico report on February 24.
The news publication cited a report by Inca Digital to this effect. Inca’s report specifically suggests that customers of sanctioned Russian banks can use bank-issued debit cards to transact on either company’s peer-to-peer cryptocurrency trading platform. another scholarship.
Huobi and Kucoin would not directly accept funds from sanctioned banks. However, Inca Digital CEO Adam Zarazinski claims that the above activities directly violate international sanctions despite the existence of an apparent “loophole”.
The report also identifies loopholes in Binance’s policies, as the exchange is supposed to provide Russian users with “multiple methods” to purchase cryptocurrency on its exchange and peer-to-peer. This concern exists despite the fact that Binance blocked fiat deposits from certain Russian payment cards in March 2022.
Binance has denied these allegations. It said it fully enforces KYC regulations and added that it filters communication between users to enforce penalties.
The Inca Digital report also suggested that ByBit allows users to buy crypto through its peer-to-peer marketplace and through fiat deposits. ByBit has not commented on the issue.
Several exchanges have taken steps to block Russian users. Blockchain.com, Crypto.com and LocalBitcoins took action in October. Coinbase blocked Russian users before March 2022, while Binance added restrictions in April 2022.