By George Ward
Leading cryptocurrency exchange Binance, has placed more limitations on its peer-to-peer (P2P) trading platform for its customers in Russia. According to a recent announcement, Russian residents using the Binance platform are now only permitted to use the Russian ruble for transactions on the P2P platform.
This change affects users who live within Russia and have completed their Know Your Customer (KYC) verification process. Users outside of Russia, including those previously allowed to use other currencies like the ruble, US dollar, Euro, and Ukrainian hryvnia, are now restricted to using the Russian ruble only if they fulfill the Russian KYC requirements and reside within the country.
This adjustment has raised questions and discussions among Binance’s Russian user base, with the Telegram post garnering almost 700 comments.
User Challenges And Binance’s Response
The impact of this alteration is mainly felt by Russian nationals living abroad. Their comments show that many users rely on Binance’s P2P service to convert their rubles from Russian banks to different currencies, such as Tether (USDT), especially when dealing with sanctioned banks.
For instance, one user shared their experience of trying to buy Tether with rubles from the sanctioned Russian Tinkoff Bank. However, they encountered difficulties since their account was verified outside of Russia.
They needed to transfer their Russian funds to a foreign country. Another user, who has been residing and working in Kazakhstan for nearly a year, wondered how to transfer money from Russia to Kazakhstan using the P2P platform.
They mentioned that they have been buying USDT with rubles and then exchanging it for the Kazakh tenge. Unfortunately, this process was interrupted after August 25th due to the new restrictions.
In response to such concerns, Binance’s customer support clarified that using rubles on their platform requires users to meet three criteria: Russian KYC verification, Russian nationality, and a Russian proof of address.
However, Binance did not specify whether these restrictions were connected to Western sanctions or were a response to new fiat currency limitations imposed by the Russian government amid the ruble’s value decline.
Adjustments And Cryptocurrency Market Dynamics
Reports from local sources have highlighted that Russian banks have been implementing extensive restrictions on fiat deposits and transfers, even introducing fees, such as 50%, for US dollar transactions. This comes as the ruble’s value has declined significantly against the US dollar.
These recent changes add to a series of measures to restrict Russians from performing inter-currency transactions to boost the ruble’s value. A few days before this announcement, Binance removed sanctioned Russian banks like Tinkoff Bank and Rosbank from its P2P platform.
This adjustment was announced after Binance promoted its services on a prominent Russian YouTube channel by Yuri Dud. Despite the challenges users face and the outcry after the decision, Binance has remained resolute behind its decision.