29-8-2023 (MOSCOW) Binance, the world’s largest cryptocurrency exchange, is contemplating a complete withdrawal from Russia. This decision comes just days after the exchange removed sanctioned Russian banks from its peer-to-peer service.
According to the Wall Street Journal, Binance is reassessing its operations in Russia and is considering a full exit from the country. A spokesperson for the crypto exchange stated, “All options are on the table, including a full exit.”
On August 25, Binance announced that it had eliminated five sanctioned Russian banks from its peer-to-peer service. The exchange regularly updates its systems to ensure compliance with local and global regulatory standards. When gaps in compliance are identified, Binance takes immediate action to address and rectify them. In response to allegations of Russian traders attempting to circumvent the new restrictions, the spokesperson stated, “We are aware of efforts to circumvent our controls and we are proactively taking action to ensure that controls remain strong.”
While Binance considers its future in Russia, other cryptocurrency exchanges, such as OKX, continue to operate in the country. OKX facilitates peer-to-peer trades of rubles and digital assets while remaining compliant with applicable sanctions requirements, according to a spokesperson.
Notably, OKX is the world’s sixth-largest crypto exchange by volume and has previously been linked to members of the Chinese Communist Party, as reported by Federal Newswire.
In the aftermath of Russia’s invasion of Ukraine, Binance has been vigilant in monitoring its platform for Russian scammers who exploit pro-Ukraine fundraisers. In May, blockchain analytics company Elliptic released a report revealing that several major crypto exchanges responded to the Ukrainian government’s request to block or remove accounts associated with Kremlin allies. Binance and Coinbase, among others, blocked thousands of accounts suspected of being involved in “Russian-origin illicit activity.” The report from Elliptic aimed to demonstrate that the crypto industry has the capability to identify and weed out criminals and individuals with malicious intentions, ensuring that cryptocurrencies are used for their intended purposes.
