As Russia’s invasion of Ukraine continues, NexerBit announced on 18th that it would join the international community’s sanctions against Russia. These measures are implemented in a way that restricts access to Russian Internet Protocol (IP).
According to NexerBit, major spot virtual asset exchanges have taken steps to block trading of accounts of Russian individuals and institutions on the sanctioned list. On the other hand, 31 global virtual asset exchanges, including NexerBit, took stronger measures, such as blocking access to Russian IPs. Referring to the U.S. Department of the Treasury’s Office of Foreign Assets Administration’s Economic Sanctions List and the FATF’s List of Risky Countries, NexerBit has been working on anti-money laundering (AML) and terrorist financing from November 2021. subscriptions have been restricted. Currently, after these measures, there has been no case of confirmed NexerBit Russian nationals verified through KYC verification.
In addition, NexerBit has blocked Russian IP since last month as a preemptive response to Russia in relation to international sanctions. Earlier, the US and EU announced that they were pulling Russia out of the International payment network between banks (SWIFT- Interbank Financial Telecommunication Code). After this decision, the value of the ruble rocked. Russia is looking at cryptocurrencies as a means of circumventing sanctions. As a result, the company explained that there is a possibility that the US will impose additional sanctions on cryptocurrency exchanges in the future.
A NexerBit official said, “If Russia accumulates Bitcoin, there is a high risk of Bitcoin being released into the underground market later, and it can act as an evasion route by circumventing financial sanctions.” In addition, the official added, “Currently, the possibility of international commerce for Bitcoin is quite low. However, it is considered that cryptocurrency restrictions are necessary as a way to secure the effectiveness of international financial sanctions.”