Binance has stopped processing transactions involving 17 cryptocurrency-asset service providers and platforms following a fresh wave of regulatory and sanctions actions by the United States and European Union.
The cryptocurrency exchange, in a notice to users on Saturday, said restrictions on the affected entities would take effect in phases, with the measures covering platforms operating across Nigeria, the United Arab Emirates, Iran, Georgia, Belarus, the United Kingdom and other jurisdictions.
The restrictions have already taken effect for some entities. Binance said transactions involving Shelbit General Trading LLC, which operates in the UAE and Iran, and Iran-based Aban Tether Exchange were restricted from August 7.
Binance identified A7 Nigeria, A7 Africa and PilotFinance Ltd among the affected entities, with restrictions taking effect from August 13. A7 Africa operates in Nigeria and Zimbabwe.
From August 23, the restrictions extend to Rapira and Aifory Pro (Sooty Ltd.), both operating in Georgia; ABCeX (Nueva Cryptologia S.A.S DE C.V.), linked to El Salvador and Georgia; Belarus-based WhiteBird and Tradex (Brightum LLC); and NoOnecrypto INC., which operates internationally.
Other platforms named by Binance include Monease Ltd in the UK, BitPapa in the UAE, Exnode and Exnode Pay (Arvix) in Georgia, HTX (Huobi Global SA), founded in China, and EXMO Ltd, which operates in the UK and Europe.
The exchange instructed users not to directly or indirectly send funds to, receive funds from, or otherwise transact through Binance with any of the listed service providers after their respective effective dates.
“Any transactions attempted on or after these dates, may be held and subject to a compliance review,” Binance said.
The exchange added that affected wallets could be restricted while compliance reviews are ongoing and warned that transactions involving the listed entities could constitute a breach of its terms of use.
Nigeria among affected markets
The inclusion of three Nigeria-linked entities places the country among the markets directly affected by Binance’s latest compliance measures.
A7 Nigeria, A7 Africa and PilotFinance Ltd were all listed under the August 13 restrictions. Binance did not state in the notice that the Nigerian entities had been sanctioned by the US or EU, nor did it provide specific allegations against each platform.
Instead, the exchange said the restrictions formed part of its obligation to comply with regulatory requirements in the jurisdictions where it operates.
“Binance is required to adhere to the regulatory requirements in the jurisdictions in which it operates.
“These measures are necessary to meet those requirements and to help maintain a safe and secure environment for our users and their assets,” the company said.
Sanctions drive tighter crypto controls
Binance’s action follows recent regulatory measures targeting cryptocurrency service providers accused of facilitating transactions linked to sanctioned jurisdictions and entities.
On August 7, the United States Treasury sanctioned Shelbit, a Dubai-based crypto exchange, alleging that it facilitated transactions involving Iran’s Islamic Revolutionary Guard Corps and other Iranian-linked entities.
Aban Tether Exchange, an Iran-based platform, was also sanctioned over transactions involving sanctioned Iranian entities.
The European Union has separately intensified restrictions on crypto platforms as part of its latest sanctions package against Russia.
On July 23, the Council of the EU announced its 21st package of restrictive measures against Russia over its invasion of Ukraine. The package included restrictions targeting a number of crypto-asset platforms.
Among the platforms affected by the EU measures were PilotFinance Ltd, Rapira, Aifory Pro, WhiteBird, NoOnecrypto INC, Tradex, Monease Ltd and BitPapa.
Binance warns users over wallet addresses
Beyond blocking transactions, Binance warned users against sharing their wallet addresses with third parties or platforms in a manner that could associate them with the prohibited crypto-asset service providers.
The exchange said users who fail to keep wallet addresses confidential could expose themselves to risks including dusting attacks and unauthorised account activity.
It also advised users with questions about the restrictions to contact Binance support.
