Russian users of the exchange could previously deposit rubles through five sanctioned banks, which Binance’s spokesperson acknowledged as a “gap” in their service.
Binance, the world’s largest cryptocurrency exchange by trading volume, has reportedly halted the option for its Russian users to use five sanctioned banks for payments on its peer-to-peer (P2P) crypto trading platform. The Wall Street Journal was the source of this information.
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Binance Removes Five Sanctioned Russian Banks
Among the named banks are Rosbank and Tinkoff, which are under Western sanctions due to Russia’s Ukraine invasion. As a result of Russian banks being excluded from SWIFT, ordinary citizens faced difficulties in moving their money out of the country.
Binance’s P2P platform was one of the few options for Russians to transfer funds in rubles. The Wall Street Journal highlighted that the crypto platform is aiding Russians in moving their money abroad, bypassing the heavily sanctioned banking system.
A Binance spokesperson stated, “We regularly update our systems to adhere to local and global regulations. When shortcomings are identified, we promptly address and rectify them. Any payment methods on the Binance P2P platform that don’t align with our compliance policies are not available.”
Binance is under intense regulatory scrutiny worldwide for its operations. The exchange is currently dealing with lawsuits in the U.S. from both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). These legal actions involve significant allegations against the exchange and its CEO, Changpeng Zhao.
Are Cryptocurrency Exchanges Providing Services Secretly in Russia?
Binance isn’t the sole exchange providing services via sanctioned banks to Russians. ByBit, another major crypto exchange, also permitted Russians to buy cryptocurrencies using cards from sanctioned banks on its P2P platform. Similar to Binance, ByBit has also discontinued services involving sanctioned Russian banks.
While Binance claimed to have ceased operations in Russia due to Western sanctions last year, several media sources have confirmed that the exchange discreetly resumed its services in the country despite the sanctions.
The Binance spokesperson emphasized their commitment to adhering to global sanctions regulations, preventing restricted individuals, organizations, entities, and countries from accessing the platform. They assured that the exchange is actively addressing gaps that could allow Russians to bypass the sanctioned financial system.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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