Binance has placed Russian nationals and businesses with holdings over €10,000 in "withdrawal-only" status on the exchange.
Following the European Union's recent enactment of the fifth set of sanctions on Russia, Binance has limited its activities in the country.
Binance Announces Restrictions in Russia
Binance is the first cryptocurrency exchange to respond to the European Union's new cryptocurrency penalties.
Following the European Union's recent restriction on "offering high-value crypto-asset services to Russia," the world's largest crypto exchange said in a blog post on Thursday that it has begun limiting its services in Russia.
Furthermore, Binance has put Russian residents' and people and legal companies' accounts on the exchange with more than €10,000 ($10,885) in "withdrawal-only mode" as a result of the new rules.
Meanwhile, Russian nationals living abroad and Russian citizens or entities existing in the country with less than €10,000 in bank accounts will be unaffected, and their accounts will remain fully operational.
"While these steps may be burdensome for ordinary Russians, Binance must continue to lead the industry in enforcing these prohibitions," the exchange stated. "We expect that all other major exchanges will soon be required to follow the same standards."
Binance's recent move comes in response to the EU's fifth set of sanctions against Russia, which was issued on April 8 in order to pressure President Putin to halt Russia's aggression against Ukraine.
A ban on providing "high-value crypto-asset services to Russia," a transaction block and asset freeze on four Russian banks, and a veto on a variety of imports and exports are among the new restrictions.
While it was first unclear what "high-value" services were, the EU later clarified the definition and set the maximum at €10,000.
As the fight continues, the EU and other Western countries have increased their focus on crypto to plug any potential loopholes that could allow affluent Russians to dodge sanctions.