An announcement conveyed by the largest crypto exchange by daily trading volume, Binance, revealed that the firm is seeking to exit the Russian market. The report demonstrated the controversial crypto exchange plans to wind down its operation in Russia due to the International Financial sanctions imposed by the US and other countries.
In an interview with the Wall Street Journal, the Binance spokesperson restated the crypto exchange in assessing possible options to depart from Russia. He stated that Binance might consider entirely leaving the sanctioned country.
Binance Contemplates on Leaving Russia
Besides exiting the Russian market, the Binance team has battled legal action for contravening the law in several jurisdictions. The crypto exchange and chief executive Changpeng Zhao has been charged by the US Securities and Exchange Commission (SEC) for violating the securities and federal laws.
Earlier this year, Binance announced plans to flee from Canada, Cyprus, Netherlands, and other European markets due to regulatory hurdles facing the crypto exchange. The Binance departure from the vibrant crypto market was also followed by the stepping down of top executives, including the Chief Strategy Officer Patrick Hillmann and the compliance officer Steven Christie.
Besides Binance battling slates of legal and regulatory action, the crypto exchange had announced the delisting of five Russian banks that supported peer-to-peer transactions. The crypto exchange decided to remove the Russian banks following the legal action taken by the US Department of Justice (DOJ).
In the filing, the DOJ questioned the legality of the peer-to-peer services provided by Binance to Russia. The law enforcer stated that Binance supported the evasion of the Western sanction.
Binance to Restrict Russia Users
In an earlier report, the Binance team announced plans to restrict Russian users from accessing the P2P trading platform. The crypto exchange stated that Russian users will be prohibited from using other fiat currencies except the digital ruble.
Interestingly, the Russian Reserve Bank plans to begin the pilot trials for the digital ruble in August. The bank plans to adopt friendly policies to push for mainstream adoption of the digital ruble by 2027.
In a Telegram post, the Binance team stated that Russian clients residing abroad would no longer be allowed to use the fiat currency, including the ruble, euro, and the US dollar. The post demonstrated that Binance users who complies with the Russian Know Your Customers (KYC) standard and live in a sanctioned country could use the ruble on the Binance P2P platform.
In a subsequent report, the Binance support team regretted causing inconvenience to its customers. They urged the Russian customers to contact the support team for any queries or clarification regarding the announcemnt. News concerning the suspension of fiat currency on crypto exchange created heated arguments among the affected Russian users.
On Telegram, most Russians staying abroad lamented that the restrictions would limit them from transferring funds to their mother country. Initially, the Russian overseas engaged local banks to convert their rubles to other currencies through the Binance P2P.
Crypto Regulatory Landscape Continues to Evolve
Elsewhere, Bybit and OKX followed the Binance footsteps to delist Russian banks from their P2P services. The two crypto exchanges removed sanctioned banks Tinkoff and Sreb from the Binance platform.
The decision made by Binance, OKX, and Bybit illustrated the challenges crypto exchanges are facing due to the evolving regulatory framework for digital assets. Notably, the ever-changing regulatory landscape for crypto has encouraged vital players to reexamine effective strategies that will address the challenges in the industry.
In the well-established crypto market, regulators and investors seek to uphold compliance on crypto assets and improve the accessibility of financial tools.
Editorial credit: Iljanaresvara Studio / Shutterstock.com