Binance, one of the world’s largest cryptocurrency exchanges, may be considering a full exit from the Russian market as it grapples with ongoing controversies. The Wall Street Journal reported on Aug. 28 that a Binance representative stated, “all options are on the table, including a full exit.” This development adds to the uncertainty surrounding the exchange’s presence in Russia.
New Rules for P2P Exchange Users
Simultaneously, Binance announced several new rules for its P2P (peer-to-peer) exchange users through its Russian Telegram channel. The update stated that Russian users could now trade on the P2P platform using fiat currency exclusively in rubles (RUB). However, this option is restricted to KYC-verified users residing in Russia. Conversely, non-Russian users no longer have the ability to trade rubles, euros (EUR), US dollars (USD), or the Ukrainian hryvnia (UAH) on the P2P exchange. Interestingly, it appears that rubles are no longer an option for non-Russian users on the platform.
When CryptoSlate accessed Binance’s P2P platform without an account from a US location, rubles were conspicuously absent as a trading option. However, the platform still featured a Russia-based trader who relied on non-ruble currencies at a foreign bank. This inconsistent approach raises questions about Binance’s commitment to adhering to regulations in different jurisdictions.
Binance has faced criticism in the past for its support of certain sanctioned Russian banks on its P2P platform. In response to the backlash, the company removed five of the banks on Aug. 25, although it continued to offer support for various other Russian payment options. At the time, the platform listed approximately 16 banks and payment channels as available.
Additionally, reports from the Wall Street Journal on Aug. 22 revealed that Russian users conducted approximately $428 million in Binance P2P trades between October and March. These findings coincided with previous reports dating back to May, suggesting that the US Department of Justice (DOJ) is investigating Binance for potential sanctions violations.
It’s worth noting that the current controversies primarily revolve around Binance’s P2P exchange rather than its main exchange. In April 2022, Binance implemented account limits on its main exchange to comply with sanctions against Russia. However, these restrictions have since been lifted without generating significant controversy.
Despite its dominance in the cryptocurrency market, Binance finds itself at a crossroads in the Russian market. The uncertainties surrounding its operations, including potential violations and the introduction of new rules, have cast a cloud of doubt over its future in the country. As Binance evaluates its options, the global crypto community eagerly awaits the decision that will define its presence in the Russian market. Only time will tell how this scenario will unfold and what it means for the future of Binance as a whole.
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