Binance, the prominent cryptocurrency exchange, has instituted additional fiat currency limitations for its Russian clientele on its peer-to-peer (P2P) trading platform. These new measures include the prohibition of the usage of fiat currencies other than the Russian ruble for Russian residents. This development has garnered significant attention from Binance’s Russian user base.
New Guidelines for Russian Users
Under the freshly introduced guidelines, Binance’s P2P platform has restricted the use of fiat currencies other than the Russian ruble for its Russian customers. This change, announced on Binance’s official Telegram channel on August 27, applies to both residents of Russia and Russian citizens residing abroad.
Notably, this alteration affects major currencies such as the euro, the United States dollar, and the Ukrainian hryvnia.
To utilize the Russian ruble on Binance’s P2P platform, users must satisfy specific criteria. This includes mandatory Russian Know Your Customer (KYC) verification and residency within Russia. The implementation of these criteria aims to ensure compliance and regulatory adherence.
User Impact and Concerns
The new restrictions have had a considerable impact on Russian individuals living abroad. This is particular to those who require ruble conversion services through Binance’s P2P platform. Numerous user comments have highlighted challenges faced when attempting to conduct transactions involving rubles from Russian banks to other currencies.
For instance, a purported Binance P2P user faced difficulties while attempting to purchase Tether with rubles from a sanctioned Russian bank. Despite having a verified account abroad, the user encountered hurdles due to the need to transfer Russian funds to Switzerland. Similar situations were echoed by other users, with cases of transferring rubles to Kazakhstan also posing obstacles.
Ruble Transaction Requirements and Potential Reasons Behind the Restrictions
In response to user complaints, a Binance customer support manager clarified that three prerequisites must be met to conduct transactions involving rubles on Binance’s platform. These prerequisites encompass Russian KYC verification, Russian nationality, and proof of Russian address.
Although Binance did not explicitly state the reasons behind these restrictions, speculation has arisen. Some experts believe they could be tied to Western sanctions or possibly stem from new fiat currency regulations imposed by the Russian government. This follows the backdrop of the ruble’s decline and reports of banks imposing hefty restrictions on fiat deposits and transfers, including substantial fees.
Continued Measures Against Russian Users
These recent restrictions by Binance are part of a broader series of actions targeting Russian users. In a related move, Binance eliminated sanctioned Russian banks like Tinkoff Bank and Rosbank from the list of available payment options on its P2P platform. Interestingly, this development comes shortly after Binance’s active promotion of its services on vDud, a prominent Russian YouTube channel.
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