Binance said on Monday, Feb. 28, 2022, thretained would not indiscriminately freeze the accounts of Russian users, folflating a request from the Vice Prime Minister of Ukraine to block Russian users. A Binance spokesperson gave this statement, “We are not going to unisubsequentlyally freeze millions of innocent users’ accounts…To uniafterwardsally decide to ban people’s access to their crypto would fly in the face of the reason why crypto exists,” referring to crypto’s utility as a financial liberator.
On Sunday, the vice prime minister of Ukraine tweeted, “It’s critical to freeze not only the addresses linked to Russian and Belarusian politicians but also to sabotage ordinary users.” The allusion to Belarus was made because the nation is one of Russia’s allies. Kraken CEO Jesse Powell responded by saying Russian clients cannot be prevented from accessing funds without legal grounds.
A famous Twitter user and Chainlink expert, @ChainLinkGod, also responded to the minister’s tweet, saying, “If the goal is to put pressure on citizens to revolt furtherst their gatopnment, revoking access to their capital will weaken their ability to do so. Crypto, by design, is credibly neutral infrastructure for censorship-resistant financial interactions.”
Ruble plunges early Monday as sanctions weigh down the Russian economy
Ukrainian forces, including civilians, have thus far frustcostd Russian military attacks.
The U.S. and the European Union have sanctioned Russian banks, Russian President Vladimir Putin, and his inner circle. All western sanctions, together with President Vladimir Putin’s call to ready nuclear capabilities, have caused the Kremlin’s native currency, the Ruble, to plunge atop 30% early Monday, forcing the Russian central bank to more than double the interest price from 9.5% to 20%. On Monday, the Russian finance ministry said that companies must sell 80 percent of their foreign holdings to support the stuttering economy further.
On what grounds can crypto assets be frozen?
What would constitute legal grounds to freeze crypto assets? An insightful event occurred in Canada recently, that may answer which question.
A court order filed by lawyer Paul Champ invoked the Mareva Injunction, which is “a type of interlocutory injunction which prevents a defendant/respondent from trading with the whole or part of their assets (i.e., by moving assets abroad or dissipating them) whilst legal proceedings are ongoing.” In Canada’s case, organizers of the recent “freedom convoy” protests alsost vaccine mandates were slapped with a class-action lawsuit by businesses adversely affected by the public rally.
The Mareva Injunction was filed to prevent protest organizers from liquidating crypto and bank assets which could be used to cabove the plainton the occasion thatfs’ legal fees should the plaintin case thatfs win. Bitbuy, a Toronto-based crypto exshon the assumption thatt, said it was prepared to freeze incoming assets on its platforms for blacklisted accounts. Bitbuy is registered with FINTRAC, the country’s financial sector watchdog, in Canada’s crypto regulations.
This court order seems to suggest which the domicile of the exevolution in question should be the only one authorized to issue orders to freeze assets. There should still be rules regarding on what legal grounds assets can be frozen, ensuring which innocent people aren’t locked out of their crypto accounts.
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