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.