Amid global companies boycotting Russian residents over the military conflict in Ukraine, some companies in the cryptocurrency industry are standing up for the rights of unsanctioned Russian citizens.
Bitfinex, a company affiliated with the world’s largest stablecoin provider Tether (USDT), will not unilaterally freeze the accounts of ordinary Russian customers as part of the global sanctions unless forced to do so.Bitfinex CTO Paolo Ardoino told Cointelegraph on Thursday.
Ardoino stressed that Bitfinex has taken appropriate action against the accounts of Russian users who have been sanctioned. “As with all of our clients’ accounts, we work to ensure that there are no irregular movements or measures that may contravene applicable international sanctions”he pointed.
According to Bitfinex, blocking all ordinary Russians over the ongoing conflict may be unfair on a human level, as the actions of governments cannot speak for individuals, the CEO said:
“Our view is that the actions of a government do not necessarily represent the wishes of individuals. Unless we are instructed otherwise by the regulatory authorities we operate under, we want to protect all of our customers’ accounts.”
Ardoino declined to comment on Bitfinex’s market in Russia, stating only that “Bitfinex does serve Russian clients.”
At the time of writing this article, Bitfinex’s terms of service say that a “sanctioned person” refers to any person or digital token address that is explicitly listed on any sanctions list that is directly or indirectly owned 50% or more by any person or group of people together with that person. Sanctioned person in Bitfinex also refers to a person who is subject to any government approval or otherwise sanctioned, restricted or penalized under applicable economic sanctions, the legal statement notes.
Launched in 2012, Bitfinex is one of the largest cryptocurrency exchanges in the world, with daily trading volumes totaling more than $800 million at the time of writing, according to CoinGecko data.. The Virgin Islands-based cryptocurrency exchange is known to be subject to regulatory litigation in the United States, with Bitfinex and Tether paying a $43 million fine for violations of the United States Commodity Exchange Act. in October 2021.
Bitfinex is not the only cryptocurrency exchange that wants to continue to support ordinary Russians amid ongoing global geopolitical issues. Michael Carter, Bittrex’s chief compliance officer, told Cointelegraph that the cryptocurrency exchange is committed to ensuring it continues to comply with sanctions requirements, while creating “minimal disruptions to law-abiding traders,” including those of Russia.nLondon-based cryptocurrency exchange Exmo also continues to support its Russian clients.
“We are not going to sanction normal people or block their accounts”said Exmo’s head of business development Maria Stankevich. However, the exchange will have to comply if the UK Financial Conduct Authority gives them an order to sanction regular people, he admitted.
Jerry Brito, executive director of the nonprofit crypto policy advocacy group Coin Center, also called in early March for global crypto firms to continue serving unsanctioned Russians.stating:
Why won’t crypto exchanges cut off Russians?
In my newsletter this week I explain and argue it’s the right call. I also criticize efforts to shame exchanges into submission.
You can read and subscribe to it here: https://t.co/BTMd9y4ek5
– Jerry Brito (@jerrybrito) March 7, 2022
Why don’t crypto exchanges exclude Russians?
In my newsletter this week I explain and argue that it is the right decision. I also criticize efforts to shame exchanges into submission.
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