Binance Disables P2P Transactions for Russian Clients Due to EU Sanctions
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Binance, a leading cryptocurrency exchange, has halted P2P transactions for Russian users trading USD and EUR following the EU’s ninth set of sanctions against Russia, which require the exchange to comply with the law.
Binance bans buying EUR and USD using P2P for Russians: Russian clients may no longer use Binance's P2P service to purchase and sell U.S. dollars and Euros. https://t.co/SRI1VJXBYy #CryptoRegulation #Binance #EUsanctions #P2PExchange #Russia pic.twitter.com/jlrFeJES3F
— Crypto411 (@CRYPT0411) March 9, 2023
Furthermore, the suspension of P2P transactions for Russian clients on Binance was implemented to ensure compliance with legal and regulatory obligations.
E.U. Nationals Can No Longer Trade Rubles Through P2P Platforms
Moreover, Binance has prohibited E.U. citizens from trading rubles through P2P platforms. However, users can still trade using other commonly available fiat currencies on Binance P2P, as stated by a spokesperson for the exchange.
These actions are part of Binance’s response to the increasing regulatory scrutiny it faces worldwide, with some nations completely banning the exchange’s offerings.
USDT/RUB Pair Still Available for P2P Trading
Despite the ongoing ban on P2P transactions for Russian clients, a reliable source has confirmed that the USDT/RUB pair is still open for P2P trading. This move is expected to alleviate the impact of the restriction, enabling clients to continue trading cryptocurrency with less difficulty.
Binance’s decision to comply with the sanctions highlights the exchange’s commitment to adhering to legal and regulatory requirements in the countries where it operates, especially given the largely unregulated nature of the cryptocurrency industry.
Binance Advocates for Local Currencies in P2P Transactions
Binance, a leading cryptocurrency exchange, is promoting the use of local currencies for its P2P (peer-to-peer) service. P2P services allow users to conduct transactions directly with each other, without involving a third party, and based on mutually agreed terms.
Binance P2P has become increasingly popular for international money transfers, especially in Russia, where SWIFT transactions have become more complicated. Users can trade fiat cash for bitcoin, transfer funds between wallets, or purchase goods using stablecoins linked to a specific currency.
However, Binance has suspended P2P transactions for Russian citizens and residents due to the EU’s ninth round of sanctions on Russia. Additionally, E.U. nationals can no longer trade rubles through P2P platforms.
Binance Reverses Leniency on Russia Sanctions
Binance, a well-known cryptocurrency exchange, has revised its policy on crypto wallets used by Russian citizens. Starting in April 2023, the total value of all assets held in crypto wallets of Russian citizens on Binance must not exceed €10,000. This is a shift from the previous policy, which only limited the marginal value of assets in connection with sanctions.
Experts suggest that Binance was lenient with Russians regarding sanctions limitations imposed last year. Despite the eighth E.U. sanctions package’s requirement, Binance did not cut off access to its platform for Russian traders. However, the company is now imposing stricter sanctions measures.
Binance has not provided an official response to whether recent regulatory scrutiny prompted this decision or if the company is expressing a political opinion on the Russia-Ukraine crisis. This policy shift is part of Binance’s response to the increasing regulatory pressure it faces globally, with some countries even completely banning the exchange’s services.