Varuni Trivedi
·2 min read
Key Insights:
MoonPay has suspended operations in Ukraine, Russia, and Belarus.
The firm has said that it’s impossible to continue operating owing to the sanctions.
However, Exchanges like Binance and FTX have argued against suspending payment options.
In a direct statement released to customers, the MoonPay team informed that they have decided to suspend operations in Ukraine, Russia, and Belarus due to recent events in Eastern Europe.
The Miami-based firm no longer supports customers’ accounts with physical addresses in the regions mentioned above.
Russia, Ukraine, Belarus see Another Ban
On March 10, the MoonPay team informed all customers that owing to the political tension and Russia’s invasion of Ukraine, the firm had suspended operations in Ukraine, Russia, and Belarus.
Reportedly, the firm explained their recent move by saying that they couldn’t continue operating in these regions and adhere to the current sanctions by countries across the world.
Notably, nations worldwide are tightening their sanctions on Russia, the US, the EU, and the UK are among the few doing so.
The US and UK are banning Russian oil, and the EU has pledged to end its reliance on Russian gas. Responding to these sanctions, Russia has banned the export of several foreign-made products.
Earlier this week, FXEmpire reported US-based exchange Coinbase blocking over 25,000 addresses related to Russian users who were supposedly engaged in illicit activities.
Additionally, in late February, crypto exchange Binance highlighted how it was looking to block the accounts of any Russian clients targeted by sanctions.
However, more recently, exchanges such as Binance and FTX argued that preserving the access of Russians to crypto is essential as the ruble falls amid heavy sanctions against Russia.
MoonPay and Its NFT Craze
MoonPay launched in 2019 powers more than 250 wallets, websites, and applications in over 160 countries. In November 2021, the firm closed a Series A funding round at $555 million, bringing its valuation to $3.4 billion.
The firm claims that the funding was the largest and highest valued Series A for any bootstrapped crypto company.
Of late, user-friendly payments infrastructure provider has made some bold moves in the NFT space. Recently, the startup spent $754,340 at the London Evening Sale at Christie’s auction house for a rare item in the World of Women (WoW) collection.
The price paid by MoonPay makes the piece one of the most expensive WoW pieces ever sold.
This article was originally posted on FX Empire
More From FXEMPIRE:
As an expert in the field, I can provide insights into the recent developments involving MoonPay and its suspension of operations in Ukraine, Russia, and Belarus. My knowledge is grounded in a comprehensive understanding of the cryptocurrency industry, geopolitical events, and the impact of sanctions on financial services.
MoonPay's Suspension of Operations: MoonPay, a Miami-based firm, announced the suspension of its operations in Ukraine, Russia, and Belarus on March 10, 2022. This decision was attributed to the political tension in Eastern Europe, particularly Russia's invasion of Ukraine. The firm cited its inability to continue operations in these regions while adhering to the sanctions imposed by countries globally.
Global Sanctions and Geopolitical Context: The article mentions the tightening of sanctions on Russia by nations worldwide, with the US, the EU, and the UK among those taking such measures. The US and the UK have imposed sanctions on Russian oil, while the EU has pledged to reduce its reliance on Russian gas. In response, Russia has banned the export of certain foreign-made products.
Other Crypto Exchanges' Responses: This development aligns with a broader trend in the cryptocurrency industry where exchanges are responding to geopolitical events and sanctions. Coinbase, a US-based exchange, reportedly blocked over 25,000 addresses related to Russian users engaged in illicit activities. Binance, another prominent exchange, had earlier expressed its intention to block accounts of Russian clients targeted by sanctions.
Contrasting Views on Payment Options: Interestingly, while MoonPay decided to suspend payment options in the mentioned regions, exchanges like Binance and FTX have argued against such measures. They believe that preserving access to cryptocurrencies is crucial for individuals in Russia, especially as the ruble faces depreciation due to heavy sanctions.
MoonPay's Background and NFT Ventures: MoonPay, launched in 2019, has become a significant player, powering over 250 wallets, websites, and applications in more than 160 countries. The firm closed a Series A funding round in November 2021, raising $555 million and reaching a valuation of $3.4 billion. MoonPay has also made notable moves in the NFT space, exemplified by its substantial expenditure on a rare item in the World of Women (WoW) collection at a Christie's auction.
In conclusion, my expertise allows me to interpret and contextualize the events surrounding MoonPay's suspension of operations within the broader dynamics of the cryptocurrency industry, geopolitical tensions, and the evolving landscape of financial sanctions.
