Breaking: Binance Cuts Ties With Sanctioned Russian banks

According to Wall Street Journal, Binance, the leading cryptocurrency exchange, has ceased operations with several sanctioned Russian banks from its peer-to-peer service. This move is seen as a measure to distance itself from allegations that emerged, highlighting its possible role in facilitating fund movement for Russians amidst increasing global scrutiny.

Legal Troubles for Binance Over Russia

Post the onset of Russia’s offensive in Ukraine, Binance publicized a decrease in its Russian endeavors, adhering to the European Union’s stringent sanction regime. However, the authenticity of this assertion has been challenged. 

Data sources, notably the Wall Street Journal (WSJ) and the Russian Central Bank, present contrasting narratives. Records reveal that despite Binance’s announcement, there’s an enduring ruble trading footprint on its platform. Peer-to-peer trades by Russian entities averaged a monthly total of $428 million over half a year.

The current system in place at Binance is under the lens for its possible multi-layered intermediaries, which might facilitate sanctioned Russian organizations in converting their funds into Binance balances.

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Disturbingly, Binance’s peer-to-peer platform reportedly had listed several sanctioned Russian banks, including giants like Rosbank and Tinkoff Bank, as payment options. The U.S. Treasury Department is notably alarmed, viewing these figures as potential gateways for evading sanctions.

Despite these concerns, Binance remains staunch in its defense. A spokesperson firmly countered these allegations, underlining the exchange’s rigorous commitment to adhering to global sanctions and categorically denying any affiliations with Russian banks.