Discover the unfolding drama around Binance, one of the world's leading cryptocurrency exchanges.
Unravel their controversial decisions regarding sanctioned Russian banks on their P2P service, the ensuing media spotlight, and the broader implications for the crypto industry.
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Binance Removes Sanctioned Russian Banks from P2P Service
Following criticism over the usage of codenames "Yellow" and "Green" to represent sanctioned Russian banks, the popular cryptocurrency exchange, Binance, removed these payment options from its Peer-to-Peer (P2P) service.
Binance’s P2P trading platform acts as a bulletin board for users offering crypto trades, additionally serving as a cryptocurrency escrow service.
Unlike the primary Binance platform, users handle fiat currency payments directly, bypassing Binance servers.
Wall Street Journal's Exposé on Binance's Practices
On August 22, the Wall Street Journal reported Binance listing sanctioned Russian banks like Tinkoff and Rosbank as payment methods.
This raised concerns over Binance's potential breach of sanctions.
By August 24, multiple Russian news outlets reported Binance's removal of these banks from its payment list.
However, these banks re-emerged under the codenames, with "Yellow" signifying Tinkoff and "Green" representing Rosbank.
A day later, the Wall Street Journal confirmed their removal. Binance's spokesperson clarified, "After realizing users were bypassing sanctions using our platform, we acted.
We regularly update our systems and strive to comply with regional and global regulatory standards. If issues are identified, we address and rectify them promptly."
Remaining Payment Options and User Workarounds
Currently, 16 payment methods remain, including Raiffeisenbank, Russian Standard Bank, Payeer, and Advance Cash.
However, both Tinkoff and Rosbank, along with their codenames, are absent. Some users, leveraging alternate payment methods like Russian Standard Bank or Akbars Bank, specify within 'advertiser's terms' that they only accept transfers via "Greenbank".
Since their inception, P2P crypto marketplaces have been divisive. While advocates argue these platforms are essential to prevent government payment censorship, critics believe they facilitate illicit fund transfers by criminals.
Pre-2023, LocalBitcoins was among the most popular P2P marketplaces. But, after ceasing its services earlier this year, many users transitioned to Binance's P2P.