Crypto Exchanges KuCoin and Huobi Transacting With Sanctioned Russian Banks
Russia is no stranger to crypto and blockchain, as the country is working on their own national digital currency and exploring other ideas for their growing role in the crypto space. However, two of the biggest crypto exchanges in the world, Huobi and KuCoin, have now been accused of doing business with sanctioned Russian banks.
Huobi and KuCoin Denies the Allegations
Huobi and KuCoin have both denied the allegations, stating that they have never done business with any sanctioned Russian banks and that reports of them doing so are false. They also noted that all of their business transactions are conducted in accordance with applicable laws and regulations.
U.S. Sanctions on Russian Banks
The United States has placed sanctions on several Russian banks due to their human rights violations, including Sberbank, VTB, and Gazprombank. As a result, any companies that do business with these sanctioned banks could be subject to sanctions from the U.S. government. This could have a significant impact on the crypto industry if exchanges such as Huobi and KuCoin are found to have violated these laws.
Action Being Taken
Although the exchanges have denied any wrongdoing, the U.S. government is taking the allegations seriously. The Treasury Department is reportedly looking into the matter and if found to be in violation of the sanctions, risks being subjected to significant penalties.
Crypto Industry Response
The crypto industry has responded to the allegations, with some arguing that exchanges such as Huobi and KuCoin could be taken advantage of by entities trying to circumvent the sanctions. It is important that exchanges take extra precautions when doing business with countries that may have been placed under sanctions by the U.S. government.
Others in the crypto community have argued that these exchanges are simply trying to remain accessible to a larger customer base and that they are not knowingly circumventing sanctions. They also noted that the sanctions are outdated and should be lifted in order to allow exchanges to do business with these countries.
At this time, it is unclear if Huobi and KuCoin will be found to be in violation of the sanctions, but it is clear that the U.S. government is taking the allegations seriously. It remains to be seen how the crypto industry will react to any potential violations and what the outcome of the investigation will be.