Thursday, June 1, 2023

KUNA Founder Throws Allegations on Binance


The founder of the Ukrainian cryptocurrency exchange KUNA, Michael Chobanian, has brought significant claims against Binance.

Despite the sanctions imposed on Russia, Chobanian claims that Binance has been closely cooperating with the Russian government.  He stated that they have been doing it for a long time.

Clarification on Binance’s Stand

During an interview, Chobanian made the claims and called Binance CEO Changpeng Zhao. He requests clarification on Binance’s position on Russia, as well as if the exchange intends to continue dealing with Russia following the invasion of Ukraine.

Zhao hasn’t spoken anything about his or Binance’s views. Because of his ties to the Communist Chinese Party, this could be a cause for concern.

The issue with Binance, according to Chobanian, isn’t only that they’re still working on both sides. It’s also because, before to the conflict, they cooperated with the Russian government. They are still cooperating with the Russian government, as far as he knows.

No Plans to Prohibit Russian Users

Binance has indicated that it has no plans to prevent Russian users from using its platform at this time. Individuals who are subject to sanctions, on the other hand, will face severe consequences, according to the statement. However, there is currently no evidence that Binance has taken any action.

Binance is donating $10 million and founding the Ukraine Emergency Fund, according to a spokeswoman for the cryptocurrency exchange. Binance would not comment on any false charges, according to the spokeswoman.

Key Market for Binance

Binance’s CEO had mentioned Russia as a significant market for the company back in 2019. He went on to say that Binance is searching for community partners, particularly in Russia.

In response to the penalties imposed against Russia, Zhao stated that the sanctions are not crypto-specific. He went on to say that denying crypto to all Russians would be unethical.

Russia, on the other hand, appears to be hesitant about cryptocurrency. Authorities delivered inconsistent messages, indicating a clear divide between the central bank and the government. The Russian central bank advises outright prohibition of cryptocurrencies, whilst the Russian government prefers regulation.

Binance Asked to Do More

A hearing was held before the Senate Committee on Banking, Housing, and Urban Affairs in the United States. Chobanian, who is also the president of the Ukrainian Blockchain Association, believes Binance is not doing enough to combat Russia. He pushed for a more robust attitude towards Russia from the start.

During the hearing, he stated that the first thing the Ukrainian crypto community did was shut down all ruble activities. It was due to the fact that there was a significant gap in the sanctions list. Unfortunately, not all crypto companies, particularly Binance, followed our approach.

He did agree, though, that crypto could be crucial for Russians attempting to exit the country. Crypto is arguably the only method for them to exist outside of Russia right now. Obviously, you won’t be able to buy a house or a car, but you’ll be able to get by.

Standing of Promised Donation

Chobanian further claimed that Binance had yet to provide the promised $10 million gift. The money would be sent to Ukrainian intergovernmental and nongovernmental groups (NGOs) for humanitarian efforts, according to the exchange.

Binance, on the other hand, claims to have given $2.5 million to charity, with specifics available on its website.

Jacob Yang
Jacob Yang
Jacob Yang works at Cryptoconstellation as a writer. He has been working in finance for the past 6 years. Jacob loves sharing news about the cryptocurrency world and he, himself has invested in a few. Jacob enjoys travelling and finding the best restaurants wherever he goes.

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