- Russian users will no longer be able to transfer rubbles via the exchange’s P2P platform.
- This move is tied to the legal and regulatory challenges Binance faces.
In a strategic move to align with the evolving global regulatory guidelines, Binance, the world’s leading crypto exchange by volume, has decided to delist five sanctioned Russian banks from its peer-to-peer (P2P) service.
According to the company, this action impacts Russian users utilizing the service for fund transfers in the ruble. The P2P service, which enabled users to transfer funds in the Russian local currency, catered primarily to clients seeking to move funds abroad.
In a communication shared with Coindesk, a spokesperson from Binance stated: “When gaps are pointed out to us, we seek to address and remediate them as soon as possible. In line with our ongoing commitments, payment methods on the Binance P2P platform that do not fit our compliance policies are unavailable on our platform.”
Binance Navigates Regulatory Hurdles
In an earlier report by the Wall Street Journal, the exchange is alleged to have been involved in enabling Russian users to move money abroad. The latest move is just one in a series of actions that Binance has taken in response to various legal challenges it has faced throughout the year. The exchange has encountered legal disputes, including an ongoing lawsuit by the Securities and Exchange Commission (SEC).
In June, the SEC initiated legal proceedings against Binance and its billionaire founder, Changpeng Zhao. The lawsuit alleged a series of securities violations, claiming that Binance and Zhao orchestrated efforts to lure US customers to their allegedly unregulated global exchange, comingled investors’ funds, and infringed securities laws.
In May, the US Justice Department launched an investigation into potential Russian sanctions violation by Binance. According to a report by Reuters, the investigation is centred on whether Binance was exploited to facilitate the circumvention of US sanctions by enabling Russians to transfer funds through the crypto exchange.
The mounting legal and regulatory challenges the exchange faces were recently worsened when MasterCard discontinued its crypto card program with Binance in selected countries. In a statement, the company notified users that effective September 22, the crypto card venture will be terminated in Argentina, Brazil, Colombia, and Bahrain.
