Report: Binance deals with five backlisted Russian banks

abdelaziz Fathi

Binance is allegedly facilitating transfers to and from at least five Russian banks that have been blacklisted by Western powers following Russia’s invasion of Ukraine last year.


According to the Wall Street Journal, Binance allows its customers to use these five banks, which include Rosbank and Tinkoff Bank, to process payments for peer-to-peer transactions. In such transactions, customers directly buy and sell cryptocurrencies from one another, bypassing the exchange’s crypto pool or market makers.

The report also indicates that Russians engaged in peer-to-peer transactions totaling around $428 million monthly from October to March, as reported by Russia’s central bank.

“Binance Angels,” who are volunteers from Binance, informed users via Telegram that the exchange is not enforcing trading limits on its Russian clients, despite having previously announced such restrictions in April 2022 to comply with EU sanctions. However, there has been no official statement from Binance on the matter.

“We have no relationship with any banks whatsoever, in Russia or elsewhere, in relation to our P2P program,” a company spokesperson said in a statement to Fortune. “Binance follows the global sanctions rules and enforces sanctions on people, organizations, entities, and countries that have been blacklisted by the international community, denying such actors access to the Binance platform.”

The report is likely to add another layer of complexity to Binance’s legal problems in the U.S. and its already strained relationship with regulators.

The US Department of Justice’s national security division is investigating whether Binance or its executives violated US sanctions related to Russia’s annexation of Crimea and interference in Ukraine. This probe is separate from an ongoing inquiry by the DOJ’s criminal division into Binance’s compliance with anti-money laundering and tax laws.

The move came shortly after Binance reportedly eased restrictions on Russian citizens and residents that it had imposed over a year ago, breaking ranks with mainstream finance and global regulators in a decision that weakens Western attempts to isolate Moscow.

Complying with the latest EU sanctions targeting Russia, Binance started to restrict or terminate services for Russian accounts back in Mach 2022. The move followed the adoption of new European penalties in response to Russia’s military escalation in Ukraine. However, the influential crypto ecosystem now accepts deposits in Russian rubles, euros, British pounds, and other currencies using bank cards issued in Russia.

Binance told users that Russian nationals and people living in the country, as well as companies based there, are not allowed to trade on its P2P marketplace using US dollar or euro. EU-based traders were also prohibited to transact in Russian rubles.

Accounts for Russia-linked users that have completed address checks and hold crypto worth less than 10,000 euros can choose other available fiat currencies.

Read this next

Digital Assets

Swiss regulator shuts down CoinShares’ partially-owned FlowBank

Switzerland’s financial regulator, FINMA, has closed FlowBank SA and placed it into bankruptcy due to severe breaches of capital requirements and other supervisory laws. This follows a series of enforcement actions against the bank that began in October 2021.


Presale Power Players: 5 Crypto Presales Primed for Success in 2024 According to Experts

Unlock the potential of the best presale cryptos available now. See why experts recommend BlockDAG, Bitbot, eTukTuk, 99Bitcoins Token, and ButtChain.

Executive Moves

Paxos axes 65 jobs, cuts headcount to below 300

Stablecoin issuer Paxos has laid off 65 employees, equating to 20% of its staff, despite maintaining a robust financial standing.

Institutional FX

US sanctions trigger major shifts in Russian FX market, says Sergey Romanchuk

The U.S. sanctions imposed on June 12 against the Moscow Exchange and its clearing entity, the National Clearing Center (NCC), are set to cause massive disruptions in the Russian currency market, according to FX industry veteran Sergey Romanchuk.


BlockDAG’s X1 Miner App Beta Sparks $49.2M Presale Rise; Uniswap & XRP Whales Getting Involved?

Experience BlockDAG’s meteoric 1120% presale rise, Uniswap’s UNI climbing 18%, and Ripple’s XRP anticipating ETF approval. Explore their latest breakthroughs!

Market News, Tech and Fundamental, Technical Analysis

GBPUSD Technical Analysis Report 13 June, 2024

GBPUSD currency pair can be expected to fall further toward the next support level 1.2700, which has been reversing the price from last month.

Institutional FX

U.S. sanctions halt dollar and euro trading on Moscow Exchange

New U.S. sanctions against Russia have led to the immediate suspension of trading in dollars and euros on the Moscow Exchange (MOEX), the country’s largest exchange group.

Digital Assets

MicroStrategy raises $500M to buy more Bitcoin, now holds 214,400 BTC

MicroStrategy, the largest corporate investor in bitcoin, plans to raise $500 million through a convertible senior note offering, with an option for an additional $75 million.

Crypto Insider

7 Best Upcoming New Crypto Coins : From  World of Virtual and Augmented Reality

In 2024, all new buyers want to know about the best upcoming new crypto coins. For those who have invested before, you know that there are often “hidden gems” that can give you huge returns on your money.