The cryptocurrency exchange CoinHub, which replaced Binance in the Russian Federation, announced that it will soon cease operations.
Why is CoinHub leaving the market?
The Binance cryptocurrency exchange was one of the first to support sanctions against Russian citizens. The accounts of individuals who were on the list of American authorities were blocked, and the funds were actually appropriated by the management of the exchange. After some time, Binance made further concessions to the White House, prohibiting Russian citizens from storing more than 10,000 euros in any cryptocurrency on the exchange. Following this, other restrictions were introduced, and as a result, at the end of 2023, the exchange finally left Russia. All users were given time, which allowed them to withdraw assets, and the simplest solution was to use the Russian platform CoinHub. The exchange gained control over Binance's business in Russia and offered all users to transfer assets without additional fees. It is unclear how many people have taken advantage of this generosity, but very soon they will have to look for an alternative.
Today it became known about CoinHub’s decision to close the exchange, which implies a complete cessation of activity. Allegedly, the company's management studied the market prospects and decided to abandon previously set goals and long-term development plans. Today at 13:00 Moscow time, registration of new users was completely stopped. At the same time, transfers of funds in any cryptocurrencies and fiat assets from Binance are completely blocked. Also, users will no longer be able to top up their wallet using any previously available method. Following this, on March 28, the acceptance of applications on the Simple Futures and Futures Trading platforms will be stopped. All users who have opened futures positions are encouraged to close them as soon as possible. On April 2, CoinHub will stop accepting new advertisements for p2p trading. From now on, only previously received orders for the purchase and sale of cryptocurrency will be serviced. Exactly at 13:00 on April 5, Moscow time, the exchange will close all active orders.
At the same time, on April 18, all trading pairs on the futures market will be forcibly closed, and on April 23, the spot market will be blocked. At this point, the cryptocurrency conversion function will be blocked, so exchange users are advised to withdraw all assets in advance. It is necessary to close all trading positions, since forced liquidation will not be the most profitable solution. On May 10, CoinHub will completely cease operations, but will continue to serve accounts with funds remaining. All assets will be converted into USDT at the rate as of May 10, and funds can be received by agreement with the exchange. Users who do not have time to withdraw all assets by May 10 will have to pay CoinHub 1% of the value of all assets for storage. It is separately noted that the exchange will make every effort to ensure the complete security of user funds. Enough time is allocated for withdrawal of funds, and any wallet owner can send all their savings to other exchanges or cold wallets in a few clicks. Representatives of CoinHub do not say what is the reason for this. It is also unclear how such a decision will affect Russian citizens. After Binance left, a certain vacuum arose in the Russian Federation, which the new exchange was supposed to fill. For unknown reasons#CoinHub failed to cope with the task, which means that citizens of the Russian Federation are left with not many options. You can use the services of Russian exchanges, or switch to small Asian exchanges that have not imposed sanctions against Russian citizens.
The last option only seems optimal, since the security of exchanges is lower than that of#Binance , and the lack of authorization using a passport forces you to store account data more carefully. Be that as it may, options remain, and if you wish, you can easily find a reliable place to store and trade cryptocurrencies. Experts note that the easiest way to store money remains the so-called cold wallet. This is a specialized flash drive that has increased protection and allows you to avoid any blocking by the Russian and American governments. Thanks to the built-in tools, funds are transferred to dozens of popular exchanges around the world, and can also be sent directly to another cold wallet. This method of investing is not suitable for traders and individuals who actively trade on exchanges. Well, for those who are making long-term investment plans for 5-10 years, there is simply no better tool for storing cryptocurrencies. In this material, we do not give advice on choosing an exchange and the most reliable manufacturers of secure cold wallets. You can find all this information on the Internet.
