In the past few days, some sources claimed that Binance, the world’s largest cryptocurrency exchange by volume, is lifting limits for Russian users.
Binance Removes Limits for Russian Users
About two months after the start of the Russia-Ukraine war in April last year, Binance imposed restrictions on citizens of the Russian Federation following the European Union’s restriction package. This included Binance restricting its services to Russian citizens and legal entities based in Russia with crypto assets worth more than €10,000. At the time, crypto accounts above the amount set by Binance were given 90 days to close their positions and transactions.
Our article covers Binance’s claims to lift some of the restrictions on its deposit and withdrawal policies in April 2022.
Allegation Supported by Technical Information
On April 18, 2023, RBC, the Russian financial institution, announced that Binance users are no longer subject to certain limits, confirmed by its technical support in the region. Additionally, DeCenter, a crypto-focused channel on Telegram widely used by the crypto industry, posted a screenshot of an alleged support chat with a Russian-speaking user. The purported Binance support team member writes in their message:
“Binance removed the limit of 10,000 euros for the balance of Russian users.”
P2P Transaction Restrictions
Contrary to the claims made at the top of this article, the Binance platform still has restrictions on peer-to-peer (P2P) transactions involving US dollars and Euros for Russian users. Russian citizens and residents are still unable to trade Dollars and Euros using Binance’s P2P service, regardless of their citizenship.
Binance’s Regulator Problem
Aside from Russia, Binance still has a lot of regulatory issues in other countries. The Australian Securities and Investments Commission (ASIC) canceled Binance’s derivatives license, requiring the exchange to liquidate all existing positions by April 21. The decision comes from concerns over Binance’s classification of retail and wholesale clients, which has significant implications for consumer protection.
In addition to this case, it follows the US Commodity Futures Trading Commission’s (CFTC) lawsuit against Binance for illegally operating derivatives in the US and regulatory challenges from agencies in the UK, Japan, and Singapore.
VISIT OUR OTHER BLOGS: ALL NEWS
Leave a comment