More Crypto FUD?: Binance Blocks More Russia Transaction Modes Amid War

Binance Russia News: Top crypto exchange Binance has now closed more gaps for Russia based users to exchange other fiat currency amid restrictions on it amid the Ukraine war. The latest changes were affected by restrictive measures of the European Union against Russia as part of the latest set of rules. The EU’s tenth package of sanctions against the country were introduced on February 25, 2023. Not only do the latest changes pose new challenges to Russian nationals and people living in the country, they could potentially harm the crypto market‘s already stressful liquidity concerns.

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The new restrictions from the crypto exchange come on top of the pervious limitations on trading activities of Russian users. In April 2022, Binance placed limitations on trading activities of users from the country’s users in the wake of the prevailing European sanctions. Trading and deposit related restrictions were placed on Russian accounts that had crypto assets worth over 10,000 Euros. Only the withdrawal function was given to this set of users. Read More..

New P2P Fiat Restrictions On Russia Users

The fresh restrictions affect a ban on Russia users from buying and selling US Dollars and Euros via its P2P platform. Also, users based in the European Union countries will not able to transact in Russian rubles through the platform. Reports said however that the users will be able to transact in other fiat currencies. While crypto transactions had a significant role in mobilizing donations to Ukraine in light of the war, Russians were banking on cryptocurrency based transactions as sanctions made it increasingly difficult to operate.

Liquidity related hiccups are already making a dent in crypto businesses in the United States, as banks deny support to the industry amid regulatory restrictions. Silvergate Capital, which was until recently a leading institution offering support to crypto players, announced voluntary liquidation as it faced the brunt of the FTX collapse. The Bitcoin price is already on a downward trend in the recent days. Are the new EU restrictions strong enough to bring more FUD due to liquidity concerns in the crypto ecosystem?

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