Crypto Exchanges May Freeze Russia-Related Funds

Popular cryptocurrency exchanges might soon take collective action against digital currency wallets related to Russia.

Several crypto trading platforms consider freezing funds in wallets related to Russian IP addresses, shared anonymous source close to the matter. The insider has not specified which crypto exchanges could be involved and only hinted at the decision of a massive scale.

Such measures could be taken in response to the growing risk that sanctioned entities are using digital currencies to evade economic sanctions.

“Russia has crypto-related tools to bypass restrictions, including ransomware. They can activate ransomware to access foreign capital and make revenue. Crypto community finds it unacceptable. It finds war unacceptable” the source said.

Cryptocurrency trading volumes have spiked in Russian Federation after European Union member countries and the United States enacted historic sanctions to Russian entities and individuals for the military invasion into Ukraine.

In the meantime, the little regulated cryptocurrency industry is often used as a back door for illicit financial activities, like money laundering and terrorist financing.

Contrary to banks and regulated financial institutions, decentralized asset platforms are not obliged to report or block transactions with entities that are under sanctions.

DailyCoin has attempted to contact several crypto exchanges for further comments, but to no avail yet.


Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

    You can always unsubscribe with just 1 click.

    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

    Rate This Article
    In order to improve, we give you the opportunity to rate DailyCoin content

    DailyCoin is an online media outlet, with a focus to cover blockchain and crypto news, opinions, trends and helpful articles. We focus on delivering fast and objective news about cryptocurrencies and crypto markets with a swirl of passion. Our dedicated and motivated global team is here to deliver the highest quality content. If you want to collaborate with DailyCoin and become our contibutor, please contact us at [email protected]