White House Requests Binance, FTX To Cut Off Russia’s Access To Crypto

Key Insights:

• The order comes from the White House’s National Security Council and Treasury Department.
• The administration said they are looking to block every possible escape for Russians from the sanctions.
• The administration is apparently in discussions with Binance, Coinbase, and FTX.

In a report from Bloomberg, it has been revealed that Joe Biden and his administration are pulling out all the stops to ensure the Russians pay for the invasion of Ukraine.

Apart from the SWIFT ban and blocking Russia’s money, they are now looking towards the digital asset class and how the U.S. can use it to enforce sanctions.

No Crypto for Russians

The White House’s National Security Council and the Treasury Department have issued orders to some of the biggest crypto exchanges. 

These exchanges have been requested to ensure that Russians do not use crypto as an escape as per the order. The country has recently imposed heavy sanctions on the Russian Federation and wants to make sure they feel the heat of the same.

A White House official was reported saying:

“Cryptocurrencies aren’t a substitute for the heavily used U.S. dollar in Russia, but that American authorities are aggressively continuing to fight any misuse of digital assets to avoid sanctions.”

Some of the crypto exchanges apparently in talks with the White House include Binance, Coinbase, and FTX.

Although both Binance and Coinbase recently stated that they wouldn’t be blocking crypto accounts of Russians, there has been a change to that decision since.

As per Bloomberg, both the exchanges are only looking to take action on the sanctioned accounts. Only the addresses identified by the Treasury’s Office are being flagged and blocked from conducting transactions.

Ukraine Continues Fighting

While the invasion worsened today with airstrikes at Kyiv’s T.V. tower, ceasefire negotiations continue. But despite the possibility of ending the war, Russia continues to go ahead with its invasion.

Ukraine is fighting back and is also supporting the White House’s decision. Three days ago, the Vice Prime Minister initiated the request by asking all major crypto exchanges to block all Russian accounts.

He even went on to say that ordinary Russian citizens must also be “sabotaged” this way.

However, the likes of Kraken denied this request saying that until a legal requirement occurs, the exchange would not do this.

The CEO of Kraken, Jesse Powell, also added that this legal requirement could be coming soon. And that Russian citizens should remain vigilant concerning the same.