Which crypto services are restricted
The new restrictions are related to 21st package of EU sanctions against Russia, which the European Union adopted on July 23. As part of the package, the EU banned transactions with 14 crypto-platforms operating outside the European Union and, according to the European authorities, can be used to circumvent sanctions.
Restrictions have already come into effect for three platforms August 13. It:
A7 Nigeria;
A7 Africa;
PilotFinance.
The ban will come into effect for 11 more services August 23:
Rapira;
Aifory Pro;
ABCeX;
WhiteBird;
NoOnecrypto;
Tradex;
Monease;
BitPapa;
Exnode and Exnode Pay;
HTX;
EXMO.
Binance will block transactions
Binance stated that will not process transactions involving said platforms.
Restrictions will not only apply directly to crypto services. The exchange can also apply them to crypto-wallets that will be identified as being associated with sub-sanctioned platforms.
If such a connection is detected, operations with the relevant addresses may be temporarily restricted for the period of additional verification.
For users, this means that the transfer of cryptocurrency between Binance and one of the sub-sanctioned services can be blocked or sent for further review.
Why did the EU introduce these restrictions?
The European Union believes that certain crypto-platforms can be used to conduct financial transactions to circumvent sanctions restrictions.
Therefore, the new measures are directed not only against Russian companies directly, but also against financial infrastructure that potentially helps circumvent sanctions.
Cryptocurrency transactions are a particularly sensitive area, as digital assets can be used for cross-border transfers without traditional banking infrastructure.
Binance has already left the Russian market
Binance announced its withdrawal from the Russian market in September 2023. The exchange sold its local business to the CommEX crypto platform.
After that, Binance continued to serve a limited number of Russian users, but subject to current sanctions requirements.
Now, a new package of EU restrictions further narrows the possibilities of conducting transactions between Binance and platforms related to the Russian crypto market.
What this means for the crypto market
The new restrictions demonstrate that sanction control gradually extends not only to banks and traditional financial institutions, but also to cryptocurrency infrastructure.
For users, this means stronger checks on transactions, especially if funds pass through platforms or crypto wallets that have ties to sanctioned entities.
At the same time, the limitation is part of a wider one of the 21st package of EU sanctions against Russia, which also covers banks, financial institutions, the oil sector and vessels of the Russian "shadow fleet".
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