Bloomberg: Huobi and KuCoin are allowed to use debit cards issued by sanctioned banks in Russia for transactions

On February 25, according to the report released by the digital asset data analysis company Inca Digital, Huobi and KuCoin still allow people to use debit cards issued by sanctioned Russian banks such as Sberbank for encrypted transactions.

Interpretation of this information:

The cryptosphere is always up to something, sometimes good, sometimes not so good. On February 25, the digital asset data analysis company Inca Digital released a report that revealed something worth paying attention to. The report unveiled that Huobi and KuCoin still permit people to use debit cards that were issued by sanctioned Russian banks such as Sberbank, for encrypted transactions.

The issue of sanctions has been a burning one, with various countries placing sanctions on others for a variety of reasons. In 2014, the United States, alongside other countries, placed sanctions on Russia for annexing Crimea. One of the principal targets of the sanctions was the banking system. Among the affected banks was Sberbank, Russia’s largest bank.

Sanctions have effectively cut off some Russian banks from the international financial system, making it challenging to access foreign currency. However, while sanctions aim to harm a particular area of the economy, their implementation can be complicated. In this scenario, the sanctions imposed on Sberbank have virtually been ignored by some crypto exchanges like Huobi and KuCoin, disregarding American efforts to hurt the Russian economy.

The ramifications of such actions are quite profound. Crypto adoption could take a hit as countries could impose further sanctions to deter its use by these exchanges. While crypto enjoys being borderless, it could be affected by the effects of sanctions, as seen in this case. Exchanges that continue to go against sanctions could face a tough time if the sanctions become more stringent.

The digital asset data analysis report by Inca Digital shows that despite the sanctions, some crypto exchanges like Huobi and KuCoin continue to permit the use of debit cards issued by sanctioned Russian banks, for encrypted transactions. This revelation makes it clear that crypto exchanges have a responsibility that they need to adhere to, to ensure they don’t inadvertently violate any laws or regulations. They could mitigate the effects of sanctions by enacting their policies, education of traders, and improved screening of transactions.