Main article: Binance
2024: Closing access to the exchange for all Russian citizens living in the Russian Federation
Binance: Due to the decision to leave Russia by selling CommEX, from 31.01.2024 03:00 (Moscow time), users who are citizens and residents of the Russian Federation will not be able to trade on Binance P2P.
Access to Binance P2P will remain for those citizens of the Russian Federation who live outside of it and have documented this.
2023
Termination of ruble transactions between users
On December 11, 2023, Binance announced the termination of operations in rubles. The decision was announced a few weeks after the announcement of the sale of the Russian crypto exchange business.
 | Following the decision to leave Russia and sell the business to CommEX, Binance will stop supporting the Russian ruble (RUB) in P2P format (direct trading of users with each other - approx.), TASS Including trading pairs/RUB ,/RUB, FDUSD/RUB, USDT BTC BNB/RUB ,/RUB ,/BUSD/RUB and ETH RUB/RUB coordinated time of January, from 00:00 Moscow time). |  |
As the crypto exchange clarifies, customers will be able to conduct operations with the ruble on the CommEX platform, to which the company's Russian assets were sold. To do this, you need to link your Binance account to your CommEX account. Also, users can withdraw Russian rubles through Binance's fiat partners until January 31, 2024, convert Russian rubles into cryptocurrency or exchange them for cryptocurrency on the Binance spot market.
FG Finam analyst Leonid Delitsyn, in a conversation with Rossiyskaya Gazeta, noted that Binance's departure from the Russian crypto market is largely due to the desire to conduct an IPO in the United States and, accordingly, the need to provide for all possible claims from the American government. In turn, cryptocurrency market analyst Viktor Pershikov told the publication that the curtailment of Binance's Russian business will not have a significant impact on the cryptocurrency market in the country. He recalled that the restrictions imposed by Binance since the spring of 2022 led to the fact that many citizens of the Russian Federation preferred to use other exchanges (in particular, OKX, KuCoin, ByBit and others). Binance was not the only exchange for Russians, summed up Pershikov.[1]
Sale of all Russian assets of CommEx
Crypto exchange Binance on September 27, 2023 announced the sale of its business in Russia to CommEX. An agreement on this has already been reached and the process of migrating all Binance assets to the new platform has been launched.
The publication on the website of the crypto exchange itself indicates that the parties are interested in making this process as painless as possible for users, and that all existing assets of users from Russia are completely safe.
| | "Looking to the future, we recognize that the continuation of activities in Russia does not comply with Binance's strategy of compliance and legal security," said Noah Perlman, Binance's legal director. "We remain confident in the long-term expansion of the Web3 industry worldwide and will focus our energy on more than a hundred other countries where we continue to operate[2] | |
Binance promises to ensure an orderly migration process. Some new users who go through or have already passed the authentication process will be immediately redirected to CommEX. Gradually, all registration will be carried out only on CommEX.
This will be followed by the curtailment of all Binance services in the Russian Federation.
The crypto exchange does not disclose the financial details of the transaction, saying that the most important thing is a complete departure from Russia, without plans to extract any profit from the sold business and the prospects for its buyback.
What CommEX really is is unknown. Its website says it is a centralized crypto exchange launched "with the support of a top venture capital firm." However, there is no information about the origin of the company. In the huge text "Terms of Use," it is mentioned in passing that CommEX is registered in the Seychelles (i.e. in a deliberate offshore). There is no information about the leadership and geographical location of the headquarters either. All communications are proposed to be carried out online.
| | Considering that officially two top managers of Binance quit as early as early September, the most likely version seems to be that they are behind this unknown value called CommEX, says Dmitry Gvozdev, CEO of Information Technologies of the Future. - Binance is known for a rather peculiar policy from the series "both yours and ours," so it is easy to assume that, by analogy with the offline withdrawal of assets, this "departure" masks the desire of the crypto exchange management to return when the situation changes, or at least maintain control over financial flows and assets. | |
CommEX, for its part, promises that it will be focused on working with clients from Asia and the CIS, as well as that users will have the opportunity to buy cryptocurrency for rubles.
Two Russians who were responsible for the work of the crypto exchange in the Russian Federation left Binance
In early September 2023 cryptoexchanges Binance To EuropeGleb Kostarev , Vladimir Smerkis, director in Vostochny and director of the company in the CIS, announced their departure from the cryptocurrency exchange. It comes after Binance allowed a full exit from the market. RUSSIAN FEDERATION More. here
$8 billion of Russian operations. US launched an investigation
On August 22, 2023, it became known that the Binance cryptocurrency exchange continues to serve Russian users, despite the restrictions imposed in the current geopolitical situation. In July 2023, transactions were carried out at the Binance site with the involvement of a ruble worth approximately $8 billion. Against this background, the US Department of Justice initiated an investigation into the platform "in connection with a possible violation of US sanctions against Russia."
The Binance website says that in accordance with the fifth package of EU sanctions against Russia, the crypto exchange "is obliged to impose a restriction on the provision of services for Russian citizens," as well as for individuals living in the Russian Federation, or legal entities registered in the country. But, according to The Wall Street Journal, Russians continue to use Binance to withdraw money. It is noted, in particular, that the site provides Russian users with the ability to process payments through at least five banks under sanctions.
Most of the transactions carried out by Russian users on the Binance platform are in. stablecoin Tether For example, on one day at the end of July 2023, only Rosbank a few hundred traders offered Tether purchase and sale deals for rubles equivalent to almost $1 million. At the same time, the use of Rosbank, as well as "" Tinkoff Bank for P2P transactions, is discussed in the official Binance group in. Telegram
Due to the initiated investigation into Binance, the position of this site may worsen. At the same time, the crypto exchange itself declares that it complies with international sanctions and the requirements of the American authorities. Representatives of the company say that the P2P service Binance is not associated with any banks in Russia.[3]
US investigation into "illegal assistance" to Russians in circumventing sanctions
The US Department of Justice in May 2023 is investigating the Binance crypto exchange for "illegal assistance" to Russians in circumventing sanctions.
According to one of the sources, the investigation, which was not previously reported, is being conducted in parallel with the existing investigation conducted by the criminal department.
Binance is in talks with the Justice Department to settle previous complaints that the exchange was being used to circumvent sanctions against Iran before strict enforcement measures were put in place.
Binance lifted restrictions on payment of deposits by cards and the size of the account of Russians, but began to block physical cards received under a residence permit in the EU
Binance canceled the limit on the size of the account of 10 thousand dollars or euros for Russians, BitLenta wrote in April 2023.
Also, the crypto exchange returned the possibility of paying deposits with Russian cards and wallets. Qiwi In addition, the user account states that "all Visa cards are supported Mastercard , and other cards issued in." Russia
At the same time, Binance began to block the physical cards of users who have been verified with a passport of the Russian Federation and received a card with a residence permit in the European Union.
Ban on P2P trading in rubles for non-residents of Russia and on the purchase of dollars and euros for Russians
In March 2023, Binance limited P2P trading in rubles for accounts registered for documents issued not in Russia. Now, when trying to replenish accounts in rubles, the exchange offers users with foreign passports to "change the currency to the currency of your country."
Binance also closed for Russians, as well as for all people living in Russia, the purchase and sale of dollars and euros through its P2P service. The decision was made in accordance with the tenth package of EU sanctions against Russia.
2022
Ban on withdrawal of funds for all those born in Russia, regardless of country of residence
On May 11, 2022, the Binance exchange decided to punish Russians regardless of the country of residence. If he was born in Russia, then the withdrawal of funds is prohibited.
Closing the accounts of Sergei Lavrov's stepdaughter and Dmitry Peskov's daughter
On April 28, 2022, it was announced that Binance Holdings Ltd. had closed several accounts linked to relatives of senior Kremlin officials amid a wave of international sanctions.
The exchange said that Polina Kovaleva, the stepdaughter of Foreign Minister Sergei Lavrov, and Elizaveta Peskova, the daughter of Russian President Dmitry Peskov's press secretary, were among those blocked over the past two months. The exchange also blocked Kirill Malofeev.
The measures prompted approval by Binance from industry experts concerned about potential circumvention of sanctions with cryptocurrencies. But it also drew backlash from those who believe the restrictions have gone too far.
The exchange continues its checks to find more people associated with sanctioned individuals who can use its services.
Binance forced to close Russians access to cryptocurrency trading after the outbreak of conflict in Ukraine
On April 21, 2022, the Binance crypto exchange announced that it would restrict access to its services for those users who live in Russia and have assets worth more than 10 thousand euros, RBC reports citing a message in the exchange's support chat.
Such customers of the site, as the newspaper writes, will be able to use only the withdrawal function. They will no longer be able to trade on the stock exchange or deposit additional funds into their accounts. The decision was made in connection with pressure on the management of the crypto exchange by the US authorities after the start of Russia's military special operation in Ukraine.
Refusal to block accounts in Russia against the background of a special operation in Ukraine
Binance representatives on February 28, 2022 said that the exchange was not going to "unilaterally freeze millions of innocent user accounts" in Russia amid a special operation in Ukraine. According to them, this contradicts the very nature of cryptocurrencies.
Appointment of Vladimir Smerkis as Director of Binance in Russia
On January 11, 2022, the cryptocurrency exchange Binance announced its appointment as Vladimir Smerkis the company's director at. Russia Read more. here
2021: Crypto Exchange transferred to Rosfinmonitoring the data of all users from Russia
In April 2021, representatives of Rosfinmonitoring met with Gleb Kostarev, head of Binance's representative office in Eastern Europe and Russia. This was reported at the end of April 2022 by Reuters. According to him, the purpose of the meeting was to transfer the data of Binance customers, including names and addresses, to help fight crime.
The publication says that Rosfinmonitoring tried to track millions of dollars in bitcoins collected by Russian opposition leader Alexei Navalny, who is in prison (included in the register of terrorists and extremists).
The head of Binance for Eastern Europe and Russia, Gleb Kostarev, agreed to Rosfinmonitoring's request to agree to the exchange of customer data, follows from the messages. Kostarev told the business partner that he did not have much choice in this matter.
According to Reuters, the meeting was organized as part of Binance's work to establish ties with the Russian authorities. The transaction was carried out with the motivation to further stimulate business development in the country for the company. Over ten sources agreed with this wording. Among them are former employees of the exchange, business partners and heads of the crypto industry.
Kostarev said that he did not leak customer data to the security forces and called it "an absolute lie."
The publication says that at the end of April 2022, Binance ceased cooperation with the authorities. of the Russian Federation This decision in the company was made in connection with the Russian special operation on. To Ukraine Until February 24, 2022 information , according to Reuters, Binance had an agreement with Rosfinmonitoring to establish a local unit, and through it, as expected, the authorities could request information about the company's clients that are of interest to the department.
On April 21, 2022, Binance released an official message according to which it will restrict access to its services for users who live in Russia and have assets with a total value of more than €10 thousand. Customers of the company will be able to use only the withdrawal function.[4]
2020
Russian authorities block the website of the exchange in the country
On September 24, 2020, it became known about the blocking of the Binance website. Roskomnadzor entered the resource of the world's largest cryptocurrency exchange into the register of prohibited sites, explaining this by the presence of information on the site that cannot be disseminated in Russia.
| | On September 24, 2020, we received a notification from Roskomnadzor of the Russian Federation on the entry of the binance.com site into the register of domain names containing information prohibited for distribution in Russia. It follows from the letter that such is information about the possibility of acquiring electronic cryptocurrency (Bitcoin), the company said in a statement. | |
The register of prohibited sites indicates that the Binance website was added to the list by decision of the Marninsky City Court of the Arkhangelsk Region.
As a representative of Binance told RBC-Crypto, the company had not previously received notifications from law enforcement, civil and state services, as well as judicial authorities about the existence of any lawsuits or court decisions.
Despite the blocking of the site, the crypto exchange, as stated there, continues to provide services to Russian customers in full. The company also stressed that customer funds are safe.
By September 25, 2020, Binance continues to consult with lawyers about resolving the problem. In case of blocking, Binance is ready to use "alternative technical solutions" to continue working in the Russian Federation.
TAdviser requested comment from Roskomnadzor. At the time of publication of the material, the department did not respond to the request.
The Binance website was blocked two months after Russian President Vladimir Putin signed a cryptocurrency law, according to which cryptocurrency is prohibited as a means of payment in the country. A ban on advertising methods of payment in digital currency is also introduced.[5]
Recommendation of the company's security department not to work with clients from Russia and Ukraine
The internal compliance department of the world's largest crypto exchange Binance in 2020 recommended that the site management not work with users from Russia, Ukraine and five other countries. The reason was called "an extremely high risk of money laundering," writes Reuters. But in 2022, the site continues to work.
Notes
- ↑ Binance will stop supporting operations in rubles from January 31
- ↑ " Binance Fully Exits Russia With Sale to CommEX
- ↑ Binance, the Biggest Player in Crypto, Is Facing Legal Risks Over Russia
- ↑ Special Report: How crypto giant Binance built ties to a Russian FSB-linked agency
- ↑ Statement of Binance on notification of Roskomnadzor of the Russian Federation
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