Binance P2P, a cryptocurrency exchange, has implemented further restrictions for its Russian customers on its peer-to-peer trading platform. According to an announcement made by Binance on its Telegram channel on August 27, Russian residents are now banned from using fiat currencies other than the Russian ruble.
Additionally, Binance P2P has also prohibited its Russian clients who reside outside the country from using currencies such as the ruble, euro, United States dollar, and Ukrainian hryvnia. To utilize the Russian ruble on Binance P2P, users must possess Russian Know Your Customer (KYC) verification and reside in Russia simultaneously, as stated by the exchange.
In response to the announcement, Binance expressed its apologies for any inconvenience caused and directed users to contact Binance Customer Support for further assistance. The Telegram post relating to the announcement received significant attention from Binance’s Russian users, accumulating nearly 700 user comments at the time of writing.
The new restrictions primarily impact Russians residing in other countries who rely on Binance’s P2P service to convert their rubles from Russian banks to other currencies, as suggested by several comments. For instance, one alleged Binance P2P user encountered difficulties in purchasing Tether (USDT) with rubles from the sanctioned Russian Tinkoff Bank. The user stated that their account was verified abroad and they needed to transfer their Russian pay to Switzerland.
One Telegram user suggested that if the user is in Switzerland, they should receive their pay in francs. Another user faced issues transferring rubles to Kazakhstan, explaining that they have been living and working in Kazakhstan for nearly a year, but occasionally need to transfer money from Russia. They have been exchanging rubles for USDT and selling them for the Kazakh tenge. However, after August 25, they were unable to proceed with these transactions.
In response to the complaint, a Binance customer support manager highlighted the three requirements users must meet to use rubles on Binance: Russian KYC, Russian nationality, and Russian proof of address.
Binance did not clarify whether the recent restrictions for Russian citizens are related to Western sanctions or new fiat currency restrictions imposed by the Russian government due to the decline of the ruble. Local reports suggest that Russian banks have been imposing significant restrictions on fiat deposits and transfers, including implementing 50% fees on U.S. dollar transactions, following the ruble’s decline against the U.S. dollar in mid-August.
Cointelegraph reached out to Binance for comment on the matter, but no response was received at the time of publication.
These latest restrictions by Binance add to a series of measures targeting Russian users. On August 25, Binance removed sanctioned Russian banks such as Tinkoff Bank and Rosbank from the list of available payment options on its P2P platform. The announcement came shortly after Binance’s promotion of its services on vDud, one of the largest Russian YouTube channels hosted by Yuri Dud.
Overall, these restrictions by Binance are causing inconveniences for Russian customers who rely on the exchange’s P2P service for converting currencies. The implementation of strict requirements by Binance has led to difficulties for users in conducting transactions with their rubles, particularly for those residing abroad. As the Russian government imposes new restrictions on fiat currencies, the impact on cryptocurrency exchanges like Binance becomes increasingly evident.
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