Binance Ceases Services with Sanctioned Russian Banks on P2P Platform

The biggest cryptocurrency exchange in the world, Binance, has made a significant move by taking steps to exclude Russian institutions that are subject to Western sanctions from using its peer-to-peer (P2P) network. The ruling has repercussions for Russian traders who are no longer allowed to conduct platform transactions using cards issued by these sanctioned institutions. Additionally, there are restrictions on the transactions they may make using foreign fiat currency.

Addressing Controversy and Compliance

Recent events have brought to light the difficulties Binance is having with its P2P business and Russian banks subject to sanctions. The decision comes in response to complaints that the Bitcoin exchange should not have allowed transactions involving these banned banking institutions.

As a consequence, Binance has changed the names of bank cards issued by well-known Russian banks like Sberbank and Tinkoff to “green local card” and “yellow local card.” This action was conducted in response to a Wall Street Journal article that claimed the exchange allowed Russians to transfer money overseas, perhaps circumventing sanctions.

It’s important to note that international sanctions have put Russia under unheard-of financial constraints as a result of its participation in the neighboring Ukraine. According to reports, Binance is under investigation by the US Department of Justice for allowing its Russian customers to interact with at least five blacklisted Russian institutions.

Despite these modifications, Russian customers of Binance continue to have access to 15 different payment options for exchanging rubles for cryptocurrency. Options like Raiffeisenbank, Russian Standard Bank, Payeer, and Advcash payment systems are among these techniques.

One major limitation is that transactions by Russian citizens may only be made in rubles. Users are prompted to “Choose your local currency for P2P trading” while attempting to purchase or sell international fiat currencies. This is in line with Binance’s compliance with the laws in effect for the nation mentioned during user verification. Notably, due to EU sanctions, Russians are also subject to limitations on participating in P2P transactions involving dollars and euros.