Binance, the world’s leading cryptocurrency exchange, has discontinued its P2P (peer-to-peer) service for Russian users to trade in dollars and euros. This move comes as a result of the tenth package of EU sanctions against Russia, according to a recent report.
The ban affects not only Russians but also individuals residing in Russia. Moreover, Binance has prohibited EU citizens from buying and selling Russian rubles via P2P. If users want to continue using the exchange P2P, they can choose other fiat currencies available on the platform.
P2P services allow users to conduct transactions directly with each other without any intermediary. These services have become popular among Russians who use them to transfer money abroad, especially after regular SWIFT transfers became difficult in 2022.
The ban on transactions with dollars and euros will mainly affect those who engage in arbitrage trading and use P2P platforms as an alternative to SWIFT transfers. However, according to Alexei Zyuzin, founder of Crypto Holding, this move is not expected to bring significant inconvenience to other users.
Binance’s Sanctions On Russians Deemed Mild Despite Regulatory Pressure
Previously, Binance had limited the maximum value of assets on the balance of the crypto wallets of Russians. From April, the limit should not exceed the equivalent of €10,000. However, the restrictions were not activated immediately after exceeding the limit, and it was enough to withdraw an amount exceeding €10,000 to remove them.
Experts believe that Binance’s application of sanctions against Russians last year was relatively mild. Binance did not close the opportunity for Russians to use the exchange, as required by the eighth package of EU sanctions.
The ban on P2P transactions with dollars and euros is likely to be a result of the increased scrutiny of cryptocurrency exchanges by regulators worldwide. Binance and other crypto exchanges have faced regulatory challenges in recent years as governments try to bring them under the same regulatory framework as traditional financial institutions.
However, Binance’s decision to ban P2P transactions with dollars and euros for Russians and EU citizens is a significant move that will impact the cryptocurrency market. It remains to be seen how the ban will affect Binance’s business and the broader crypto industry in the long run.
Related Reading | Cardano Founder Throws Shade At Crypto Critics: Defends Crypto Firms’ Resilience