Crypto Storm: A Big Surprise!
Imagine this: Russia’s biggest cryptocurrency exchange, Garantex, suddenly stops all its services! This big change happened after Tether, the company that makes the popular stablecoin USDT, froze a lot of USDT on Garantex. This move has caused a lot of worry in the Russian crypto world. Let’s find out more about this exciting but worrying story.
The Story So Far: Trouble and Controversies
Garantex has been in the spotlight for a while. In April 2022, the U.S. government’s Office of Foreign Assets Control (OFAC) said Garantex was helping with bad things, like transactions on the dark web and payments for ransomware attacks. Even after these problems, Garantex kept working, helping Russian people through Russian banks that were also being punished[1][3].
Just recently, the European Union also put Garantex on its list of punishments. They said Garantex was helping Russian banks that were already being punished and was trying to get around EU punishments[5]. This was the first time the EU punished a Russian crypto exchange[3].
Tether’s Big Move: A Big Problem for Garantex
Tether’s decision to freeze over 2.5 billion rubles (around $28 million) worth of USDT on Garantex was a big hit. This move forced Garantex to stop all its services, including taking out cryptocurrency[3][5]. Garantex said this could put all Russian USDT money at risk and set a bad example for other exchanges[1][3].
Garantex said they were trying to fix the problem, but Tether hasn’t said anything official yet, which has left many questions unanswered[3].
What This Means and What’s Next
The suspension of Garantex’s services shows how hard it is for crypto exchanges to work in places that are being punished. It also shows how important stablecoin makers like Tether are in the global crypto world. As rules get stricter, exchanges have to navigate complicated laws and political situations to stay in business.
This situation also raises bigger questions about whether cryptocurrencies can be used to get around punishments and if the rules we have now are good enough. With more people in Russia using cryptocurrencies, we need clear and good rules fast[2].
Looking Ahead: A New Time for Crypto Rules
The Garantex story is a big moment in the story of cryptocurrencies and the people who make the rules. As we watch what happens next, one thing is clear: the future of crypto will be shaped by how well governments and exchanges work together to solve these complex problems.
In short, the suspension of Garantex’s services because of Tether’s actions is a big warning for the crypto world. It shows we need strong rules and cooperation between exchanges and governments to keep the global crypto market safe and stable.
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Sources:
– crypto.news
– cryptoslate.com
– investing.com
