Binance Imposes New Trading Restrictions on Russian Clients
Russian clients residing outside Russia have also been barred from utilizing other currencies like the euro or USD.
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Binance, the biggest exchange in the crypto market, has rolled out revised trading conditions for its Russian user base on its peer-to-peer platform.
Binance stipulated that Russian users are now restricted to using only the Russian ruble for transactions on its P2P platform, announced through its Telegram channel.
“Users residing in Russia can trade on Binance P2P only in fiat currency in rubles. Any other fiat currencies are prohibited.”
Additionally, Russian nationals residing outside the country are now barred from accessing key global currencies, including the euro, the US dollar and the Turkish lira, for their trades.
For authorization to transact in the Russian ruble, users must meet two pivotal requirements: undergo a complete Russian Know Your Customer verification process and provide verifiable proof of residence within Russia.
The recently unveiled measures have been a focal point of discussion among the platform’s users, as indicated by multiple comments on the Telegram post questioning and commenting on their eligibility:
“It is impossible to register on the Uzbek crypto exchange with a Russian passport.”
The exact catalyst behind Binance’s revised approach remains unknown. However, it coincides with tumultuous economic conditions in Russia, specifically the recent plunge of the ruble against major global currencies.
Furthermore, Binance’s operational footprint in Russia has become a subject of scrutiny.
Noteworthy publications such as The Wall Street Journal have highlighted potential inconsistencies in Binance’s disclosed activities within Russia. Although Binance has publicly acknowledged a reduction in its operations in Russia in line with EU sanctions, available data from the Russian Central Bank seems to narrate a different story.
$428 million/month of P2P Ruble-to-crypto.
$8 BILLION/month of Ruble-to-crypto trading on the main exchange.
If you think the US govt isn’t going to drop the hammer hard on that kind of scale of sanctions violations, you’ve lost your mind. pic.twitter.com/gpQS9qtVZe
— Travis Kling (@Travis_Kling) August 22, 2023
The sheer scale of these transactions, combined with potential third-party intermediaries within Binance’s transactional framework, has prompted regulatory watchdogs to take note. The U.S. Justice Department has been actively investigating any potential breaches of sanctions by Binance.