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Binance Restricts Fiat Transactions for Russians, Considers Exit

Binance Restricts Fiat Transactions for Russians, Considers Exit

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Binance is imposing further restrictions on its peer-to-peer trading platform for its Russian users. The exchange announced it banned Russian residents from using fiat currencies other than the ruble on its platform. 

On Monday, cryptocurrency exchange Binance announced introducing more restrictions for Russian users on its peer-to-peer (P2P) trading platform. Binance informed customers via its Telegram channel that it banned Russian residents from using fiat currencies other than the Russian ruble. 

Binance Restricts Fiat Currency Transactions to Ruble

According to Binance, Russian users residing outside of Russia can no longer use currencies such as the ruble, the US dollar, the euro, or the Ukrainian hryvnia on the exchange. The exchange further stated that to use the Russian ruble on Binance P2P, users must have Russian KYC verification and reside within Russia simultaneously. 

The exchange simply said to its Russian customers:

“Users residing in Russia can trade on Binance P2P only in fiat currency in rubles. Any other fiat currencies are prohibited.”

Further stating, 

“We apologize for the inconvenience. If you have any questions or need assistance regarding this update, please contact Binance Customer Support.” 

Sanctions Impact Binance’s Russian Operations

Many Russians have resorted to using crypto exchanges after sanctions from the West cut Russian banks off from the global payment network. 

According to reports by the Wall Street Journal, Binance removed five Russian banks under US sanctions from its P2P platform after the US Treasury Department flagged peer-to-peer crypto transactions to evade sanctions. 

Binance has been under intense regulatory scrutiny recently and is facing a reported probe for violating sanctions against Russia. In May, reports emerged that Binance Holdings was under investigation in the US for allegedly allowing customers based in Russia access to the exchange.

 In a newly published report by the WSJ, Binance is re-evaluating its Russian operations after the once-important market became an issue for the exchange. A spokesperson for Binance told the WSJ:

“All options are on the table, including a full exit.”

 Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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