Binance terminating P2P service with five sanctioned Russian banks does not mean absolution from US regulators


Share:
  • Binance exchange will no longer let clients pay one another through certain banks in Russia.
  • The exchange had been accused of helping the country’s citizenry move crypto worth $428 million monthly.
  • The exchange has attributed the move to a regular system update in compliance with local and global regulatory standards and sanctions rules.

Binance has resolved to delist several Russian banks from its peer-to-peer (P2P) service only three days after reports that the exchange was helping the country’s citizenry to move a monthly sum of $428 million. Considering the US sanction against Russia still stands, the exchange broke the law by facilitating the transactions.

Also Read: Binance could face legal risks after facilitating Russians to move crypto worth $428 million via P2P platform.

Binance ends P2P services with select Russian banks

Binance will no longer offer its P2P services to five select banks in Russia, all sanctioned, after a longstanding business with the financial institutions moving millions of dollars worth of Rubles through the service.

In a statement to CoinDesk, a Binance representative said that the exchange would “remove any payment methods on the Binance P2P platform that do not fit with our compliance policies.”

The exchange had been accused of concealing the identities of these banks, transacting with them despite the sanctions imposed against them. To keep the transactions under wraps, the exchange had color-coded these banks, with the bank cards for Sber and Tinkoff being “green” and “yellow” local cards on its payment options for P2P trading.

In so doing, Binance users would openly transact and process payments through banks without regard to the stern sanctions imposed by the West against Russia’s financial system.

It should be noted that Binance denied all allegations that it had relationships with the sanctioned banks, citing full compliance with global sanctions. While the exchange has attributed the move to a regular system update in compliance with local and global regulatory standards and sanctions rules, it does not absolve it from the regulatory clampdown.

Potential consequences of breaking sanctions

Nevertheless, terminating services to the sanctioned banks and delisting them from the platform does not mean the exchange has escaped what could follow as consequences for breaking the sanctions.

On the contrary, it could make matters worse, considering the exchange is still facing regulatory attack from the US authorities among other jurisdictions. 

As indicated, Binance is still at the center of a regulatory clampdown from both the US Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC).

The new finding could worsen its current situation, giving the US Department of Justice (DOJ) more cause to crack down on the exchange and its CEO, Changpeng Zhao, who is accused of contravening anti-money laundering regulations.

Open Interest, funding rate FAQs

How does Open Interest affect cryptocurrency prices?

Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.

How does Funding rate affect cryptocurrency prices?

Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Bitcoin price extends gains as capital inflows near all-time highs

Bitcoin price extends gains as capital inflows near all-time highs

Bitcoin (BTC) price remains northbound, a status that was invigorated by Monday reports on MicroStrategy and BlackRock. With growing optimism in the market, the risk appetite for investors is also proving elastic. 

More Bitcoin News

Stacks price soars 15% to a new all-time high as STX TVL peaks

Stacks price soars 15% to a new all-time high as STX TVL peaks

Stacks (STX) price is on a tear, following on the heels of the Bitcoin price surge, which shocked markets on Monday blasting past $57,000 and blowing $100 million in short positions out of the water.

More Crypto News

Blast gears up for February 29 mainnet launch, crosses $2 billion TVL

Blast gears up for February 29 mainnet launch, crosses $2 billion TVL

Blast, a project designed to support Blur with Layer 2 solutions, is close to its mainnet launch on February 29. Market participants have locked over $2 billion in crypto assets in Blast’s bridge to earn yield and Blast points. 

More Crypto News

TRON announces partnership with EVM-compatible chain for Bitcoin integration

TRON announces partnership with EVM-compatible chain for Bitcoin integration

TRON recently unveiled its roadmap for integrating with the Bitcoin blockchain. Justin Sun’s X post explains how TRON will take steps to integrate its ecosystem assets with the Bitcoin blockchain and support BTC Layer 2 solutions. 

More Cryptocurrencies News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

Read full analysis

BTC

ETH

XRP