Despite Ukraine's request, Binance, the world's largest cryptocurrency exchange, will not completely block all Russian accounts.

• On Sunday, Mykhailo Fedorov, Ukraine's vice prime minister, requested major exchanges to prevent access to Russian user accounts.
• Binance stated that it will not unilaterally freeze the accounts of millions of innocent users.
• Kraken CEO Jesse Powell stated on Twitter that the company cannot freeze the accounts of its Russian clients unless legally mandated to do so.

Binance announced on Monday that it will block the accounts of Russian individuals who have been sanctioned, but will not "unilaterally" freeze the accounts of all Russian users.

Major cryptocurrency exchanges have been urged by Ukraine's vice prime minister to block all Russian user accounts.

A spokesperson for Binance, the world's largest cryptocurrency exchange, stated to CNBC that they will not unilaterally freeze the accounts of millions of innocent users.

The purpose of crypto is to give people worldwide greater financial independence. Banning individuals' access to their crypto would contradict the very essence of why crypto was created.

On Sunday, Mykhailo Fedorov, Ukraine's vice prime minister, requested major exchanges to prevent access to Russian user accounts.

Fedorov tweeted that it's essential to not only freeze the addresses linked to Russian and Belarusian politicians, but also to sabotage ordinary users.

Belarus is a Russian ally.

Despite Russia's ongoing attacks on major cities in Ukraine, the country's forces are believed to have successfully repelled most of the Russian advances.

As a consequence of the sanctions imposed by the U.S. and European Union on Russian banks, sovereign debt, Putin's inner circle, and himself, the value of the Russian ruble has significantly decreased.

Binance is taking measures to address those subject to sanctions while minimizing harm to innocent users, as stated by the company.

If the international community decides to broaden the sanctions, we will enforce them vigorously, a company representative stated.

Binance stated that it would prohibit any accounts belonging to individuals on sanctions lists and is taking measures to ensure complete compliance with all sanctions.

CNBC contacted other significant cryptocurrency exchanges about freezing Russian user accounts, but has not received a response yet.

Kraken CEO Jesse Powell stated on Twitter Monday that the company cannot freeze the accounts of its Russian clients without a legal mandate to do so.

CNBC reported that KuCoin stated it would not freeze the accounts of its Russian users.

KuCoin CEO Johnny Lyu stated that as a neutral platform, they will not freeze user accounts from any country without a legal mandate. He emphasized that actions that escalate tensions and infringe on innocent people's rights should not be encouraged during this challenging time.

Dmarket, a platform for trading virtual in-game items, announced that it had severed all ties with Russia and Belarus as a result of the invasion of Ukraine, according to a statement on Twitter.

Dmarket, a Ukrainian-born startup, has prohibited users from Russia and Belarus from registering and has frozen their accounts. Additionally, the Russian ruble has been removed from the platform, as stated by Dmarket.