Binance announced Thursday that crypto traders who operate an account with sanctioned Russian banks will not be able to use their cards to purchase cryptocurrency on the platform. The exchange also confirmed that it has restricted its services from Russia.
Binance Blocks Sanctioned Russians
This puts Binance among the list of companies and financial institutions that have halted their services to Russia since the country launched its attack against Ukraine.
Before today’s announcement, Binance, alongside other cryptocurrency exchanges including Kraken and Coinbase, refused to heed the plea from Ukraine’s prime minister, saying that denying every Russian access to crypto stands against the very reason the asset was created.
However, the companies noted that they would screen their customers and restrict sanctioned individuals. The crypto exchanges asserted that cutting off an entire nation would counter the ideology between fiat and cryptocurrencies.
Safe Haven Bitcoin Outperforms Other Assets
Meanwhile, the ongoing geopolitical conflict between Russia and Ukraine has proved that bitcoin is indeed a safe haven for investors in times of war and crisis.
According to a recent report, the global financial market entered a state of fear, doubt, and uncertainty (FUD) immediately after the Ukraine invasion, causing risk assets like stocks and bitcoin to plummet heavily. However, the cryptocurrency quickly recovered, outperforming other assets in value.
Frank Holmes Disagrees
But Frank Holmes, the CEO and chief investment officer of U.S. Global Investors, believes gold is a better asset to hold than bitcoin during political crises.
“When you look at gold, its breadth and depth of historical significance as a wonderful asset is really showing up when you have war. Bitcoin is a new phenomenon (considering its creation in 2009)…Gold has a phenomenal historical significance, that whenever there is big inflation or there is political turmoil, gold is the asset class of choice,” Holmes said.
For Holmes, Bitcoin’s young age and lack of proper regulation is the main reason why the cryptocurrency cannot compare to gold in times of war.
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