In recent weeks, Binance, one of the leading global cryptocurrency exchanges, has been at the center of attention due to its policy towards customers from Russia. The recent changes introduced by the platform raise many questions, especially in the context of a potential “complete exit” from the Russian market.
Binance, a globally known cryptocurrency exchange, recently surprised the markets by introducing new restrictions for its Russian clients. Specifically, the company decided to limit Russians’ ability to conduct P2P (peer-to-peer) transactions in currencies other than the Russian ruble. Such a move means that Russians, even those residing outside the country, don’t have access to key global currencies like the euro, US dollar, or Turkish lira during their transactions.
The first to notice issues with transactions were gamers. They had trouble obtaining Turkish lira to make purchases in game stores like Steam, PlayStation, or Xbox.
To be able to transact in Russian rubles, users must meet two key requirements: undergo the full Russian verification process (known as Know Your Customer) and provide verifiable proof of residence in Russia.
Binance officially announced these changes on its Telegram channel. Many users expressed their dissatisfaction, directing harsh words towards the platform. However, the company has not given official comments about the future of these restrictions. Are they temporary, or will they become permanent? Everything is still open.
In March 2023, Binance decided to prohibit Russians from buying and selling US dollars and euros via its P2P service. The reason given was a new package of sanctions imposed on Russia by the European Union.
Interestingly, despite all these restrictions, there are reports that the exchange continues transactions in Russia. From various sources, it appears that users could still deposit Russian rubles, euros, British pounds, and other currencies using bank cards issued in Russia.
One cannot also forget about Binance’s previous legal issues related to its operations in Russia. In May of this year, the US Department of Justice began an investigation into potential violations by Binance of American sanctions related to Russia’s invasion of Ukraine.
It’s also worth mentioning Binance’s situation in Belgium. After the exchange limited its transactions in the country due to accusations of violating local anti-money laundering and terrorism financing regulations, the company found a solution. Binance offered Belgian users the opportunity to use services offered by its Polish company, which was in compliance with Belgian regulations.
The dynamics of changes in Binance’s policy towards different markets shows how complicated and volatile the world of cryptocurrencies can be, where the actions of one entity have repercussions on a global scale.
Photo by Dustin Tramel on Unsplash
