Binance dubs barred Russian banks on its platform as ‘Yellow’ and ‘Green’ cards

Binances peer-to-peer (P2P) cryptocurrency exchange in Russia has continued helping with transactions through approved banks like Rosbank after denying relationships with “any banks.”On Aug. 23, several regional news sources reported that Binance P2P has actually relabelled a few of its distressed payment choices for withdrawals and deposits, namely the approved Russian banks like Tinkoff and Rosbank.The P2P exchange replaced the banks names “Tinkoff” and “Rosbank” with terms like “Yellow” and “Green” cards, Cointelegraph has confirmed.At the time of composing, Binance P2P uses customers making use of the “regional cards” to offer cryptocurrencies like Tether (USDT) to Russian rubles and get them on sanctioned Tinkoff or Rosbank.Binance P2P user interface in Russia on Aug. 23. Source: BinanceThe brand-new naming obviously came shortly after The Wall Street Journal on Aug. 22 reported that Binance used Russian customers at least five sanctioned Russian banks, consisting of Rosbank and Tinkoff, as alternatives for processing payments.In the WSJ report, Binance executives rejected any relationships with “any banks whatsoever, in Russia or elsewhere,” in relation to its P2P platform. “Binance follows the international sanctions rules and implements sanctions on individuals, companies, entities, and countries that have been blacklisted by the global community, denying such stars access to the Binance platform,” the business said.The news came a couple of days after Binance services in Russia were promoted on a YouTube channel of a major Russian YouTuber, Yuri Dud. A current video on his vDud YouTube channel– which has 10.3 million customers– included an ad of Binance services, providing 5 USDT in exchange for signing up on the platform.In the video, Dud likewise promoted Binance Earn, which allows users to make passive income on crypto through a variety of products like flexible cost savings, locked cost savings, staking and liquidity mining.Yuri Duds YouTube channel vDud. Source: YouTubeIt appears to be uncertain how the latest news lines up with the Western sanctions against Russia. In February 2023, the European Council sanctioned Russian banks like Tinkoff and Rosbank as part of its 10th package of sanctions on Russias war against Ukraine. The United States likewise put sanctions on Tinkoff in May 2023. Related: Binance restricts withdrawals in Europe, points out payment processor issuesThe news comes months after the U.S. Department of Justice security department supposedly released an examination of Binance for permitting Russians to utilize the exchange in offense of U.S. sanctions.Binance has actually not been the sole cryptocurrency exchange that has actually been assisting in such transactions in Russia, though. Other significant P2P crypto exchanges, consisting of Huobi and OKX, likewise permit transfers with Tinkoff, Rosbank in addition to Sberbank at the time of writing. Huobi and OKX didnt immediately react to Cointelegraphs request to comment.P2P payment choices in Russia on OKX (left) and Huobi (right). Source: CointelegraphBinances agents declined to comment to Cointelegraph on either its advertisements on Duds YouTube channel or its present services in Russia. “Our comments are currently shown within the WSJ report. We will not be commenting any further on this topic at this time,” a representative for Binance said.The company didnt right away react to Cointelegraphs demand to comment on the concern of relabeling the sanctioned banks to “Yellow” and “Green” cards.Magazine: Big Questions: Did the NSA create Bitcoin?

Other Questions People Ask

What does Binance mean by labeling barred Russian banks as ‘Yellow’ and ‘Green’ cards?

Binance has rebranded its payment options for sanctioned Russian banks like Tinkoff and Rosbank as ‘Yellow’ and ‘Green’ cards on its peer-to-peer platform. This change comes after reports surfaced that Binance was facilitating transactions through these banks despite denying any relationships with them. The new terminology aims to obscure the direct association with these sanctioned entities while still allowing users to conduct transactions using these banks.

How does the renaming of Russian banks to ‘Yellow’ and ‘Green’ cards affect Binance users?

The renaming of Russian banks to ‘Yellow’ and ‘Green’ cards allows Binance users to continue trading cryptocurrencies like Tether (USDT) for Russian rubles using these sanctioned banks. This move enables users to withdraw and deposit funds while navigating the complexities of international sanctions. However, it raises questions about compliance with global regulations, as Binance has publicly stated its commitment to adhering to sanctions.

What are the implications of Binance's actions regarding sanctioned Russian banks?

Binance's decision to label sanctioned Russian banks as ‘Yellow’ and ‘Green’ cards could have significant implications for its operations and reputation. By continuing to facilitate transactions through these banks, Binance may attract scrutiny from regulatory bodies, particularly in light of ongoing investigations into its compliance with U.S. sanctions. This situation highlights the challenges cryptocurrency exchanges face in balancing user access with legal obligations.

Why did Binance deny relationships with Russian banks despite using them for transactions?

Binance executives have denied any relationships with Russian banks, claiming they follow international sanctions rules. This denial comes even as reports indicate that Binance is using sanctioned banks like Tinkoff and Rosbank for processing payments on its platform. The contradiction raises concerns about transparency and compliance, as Binance attempts to navigate a complex regulatory landscape while serving its user base in Russia.

What other cryptocurrency exchanges are facilitating transactions with barred Russian banks?

In addition to Binance, other major cryptocurrency exchanges like Huobi and OKX are also facilitating transactions with sanctioned Russian banks such as Tinkoff and Rosbank. This trend indicates that Binance is not alone in navigating the challenges posed by international sanctions while trying to maintain operations in Russia. The actions of these exchanges may lead to increased regulatory scrutiny as authorities monitor compliance with sanctions against Russia.