Binance P2P removes sanctioned Russian banks from payments list
Crypto exchange Binance has gotten rid of “yellow” and “green” payment alternatives from its peer-to-peer service after being criticized for using these code words to represent approved Russian banks, Cointelegraph validated on Aug. 25. Payment technique look for color-themed code words lead to no hits. Source: Binance.Binances peer-to-peer exchange service is a message board permitting users to provide to purchase or offer cryptocurrency. It likewise operates as a crypto escrow service. Unlike Binances primary exchange platform, it leaves fiat payments to be managed by users, and no fiat cash passes through Binances servers.On Aug. 22, The Wall Street Journal reported that Binance was noting sanctioned Russian banks such as Tinkoff and Rosbank as transfer methods. This resulted in criticism that Binance might be breaking sanctions by endorsing these banks as payment methods.On Aug. 24, numerous Russian news outlets began reporting that Binance had removed these banks from its list of payment methods. Nevertheless, these banks had reappeared as code words “yellow” and “green,” with “yellow” representing sanctioned bank Tinkoff and “green” representing sanctioned bank Rosbank.On Aug. 25, The Wall Street Journal reported that the sanctioned banks were removed from the list. The report quoted a Binance spokesperson showing that the banks were eliminated after the exchange found out that account holders were using the service to prevent sanctions. “We routinely update our systems to ensure compliance with local and international regulative requirements,” the representative apparently said. “When gaps are pointed out to us, we look for to deal with and remediate them as quickly as possible.”On the same day, Cointelegraph verified that the “yellow” and “green” payment methods were removed. Sixteen payment methods are still offered for Russian ruble conversions to crypto, including Raiffeisenbank, Russian Standard Bank, Payeer, Adv Cash, and others. Tinkoff and Rosbank are no longer on the list, nor are their code word equivalents.Related: Russia to start CBDC trials with 13 banks.Despite their main removal, Cointelegraph discovered that Binance P2P users are still promoting sales with “the green bank” as their payment method. These users list other techniques of payment, such as Russian Standard Bank or Ak Bars Bank, in the “payment technique” field but then state clearly within the “marketers terms” that they will only accept transfers utilizing “the green bank.”User posting a Binance P2P sale requiring payments to “just green bank.” Source: Binance.In this way, users have had the ability to continue utilizing Binance P2P to sell cryptocurrency through approved payment methods.Peer-to-peer crypto marketplaces have actually been questionable given that their creation. Advocates argue these markets are required to prevent federal government payment censorship, while detractors say they are utilized by bad guys to move illegal funds. Prior to 2023, among the most popular peer-to-peer marketplaces was LocalBitcoins. It was shut down previously this year, and some users moved to Binance P2P in reaction. Paxful co-founder Ray Youssef argued on Aug. 25 that P2P markets are still too centralized and too susceptible to shutdown by governments. He is dealing with a new marketplace called “Civ Kit” that he declares will be much more challenging for governments to close down.
Unlike Binances main exchange platform, it leaves fiat payments to be handled by users, and no fiat cash passes through Binances servers.On Aug. 22, The Wall Street Journal reported that Binance was noting sanctioned Russian banks such as Tinkoff and Rosbank as transfer approaches. These banks had actually reappeared as code words “yellow” and “green,” with “yellow” representing approved bank Tinkoff and “green” representing approved bank Rosbank.On Aug. 25, The Wall Street Journal reported that the approved banks were removed from the list. Tinkoff and Rosbank are no longer on the list, nor are their code word equivalents.Related: Russia to begin CBDC trials with 13 banks.Despite their main removal, Cointelegraph discovered that Binance P2P users are still marketing sales with “the green bank” as their payment technique. These users list other approaches of payment, such as Russian Standard Bank or Ak Bars Bank, in the “payment approach” field but then state clearly within the “advertisers terms” that they will only accept transfers utilizing “the green bank.
Related Content
Other Questions People Ask
What changes did Binance P2P make regarding sanctioned Russian banks from its payments list?
Binance P2P removed sanctioned Russian banks, including Tinkoff and Rosbank, from its payment methods after facing criticism for using code words like "yellow" and "green" to represent these banks. This decision was confirmed on August 25, following reports that users were exploiting these banks to bypass sanctions. The exchange stated that it routinely updates its systems to ensure compliance with regulatory requirements.
How does the removal of sanctioned Russian banks affect Binance P2P users?
The removal of sanctioned Russian banks from Binance P2P means that users can no longer use these banks or their code word equivalents for transactions. However, users have found ways to continue trading by listing alternative payment methods while still referring to the banned banks in their terms. This indicates that while Binance has taken steps to comply with regulations, some users are still attempting to navigate around these restrictions.
What are the implications of Binance P2P's actions on cryptocurrency trading in Russia?
By removing sanctioned Russian banks from its payment list, Binance P2P aims to align itself with international sanctions and avoid legal repercussions. This move could impact the accessibility of cryptocurrency trading for users in Russia, as they may need to rely on other approved payment methods. The ongoing adjustments highlight the challenges faced by peer-to-peer platforms in maintaining compliance while serving their user base.
Why did Binance P2P initially list sanctioned Russian banks as payment options?
Binance P2P initially listed sanctioned Russian banks as payment options due to the platform's decentralized nature, allowing users to choose their payment methods. However, this practice drew criticism as it raised concerns about potential violations of international sanctions. The exchange responded by removing these banks and their code word equivalents after recognizing that some users were using the service to circumvent restrictions.
What steps is Binance taking to ensure compliance with regulations after removing sanctioned banks?
After removing sanctioned banks from its payment list, Binance is committed to routinely updating its systems to ensure compliance with local and international regulatory requirements. The exchange has stated that it actively seeks to address any gaps pointed out by regulators. This proactive approach aims to maintain the integrity of its platform while navigating the complex landscape of cryptocurrency regulations.