Crypto Giant Binance Weighs Pulling Out of Russia

As Binance faces regulatory scrutiny, the exchange is considering pulling out of Russia, including its P2P trading service.

Man sitting next to the entrance of Binance to the road leading to Kremlin, showing vomit gesture.
Created by Kornelija Poderskytė from DailyCoin
  • Binance reevaluates its business operations in Russia.
  • Regulatory scrutiny puts the exchange under pressure.
  • Other crypto platforms remain active in Russia.

In a move that could send ripples through the cryptocurrency market, Binance, the world’s largest crypto exchange, is reconsidering its business strategy in Russia. Amid increasing regulatory scrutiny and geopolitical tensions, the company is exploring “all options,” including a complete exit from the Russian market.

Binance Considers Russian Quandary

On Monday, Aug. 28, The Wall Street Journal reported that Binance, the world’s largest cryptocurrency exchange, is reevaluating its business operations in Russia. A spokesperson for the company stated that “all options are on the table, including a full exit.” 

This comes after reports that Binance was assisting Russians in moving money abroad. These allegations come despite the company’s claims last year that it had ceased operations in the country in compliance with Western sanctions. However, Binance continues to enable Russians to use its peer-to-peer service (P2P) to exchange crypto for fiat currency. The service allows individuals to convert rubles into cryptocurrencies, which can then be transferred to foreign accounts or converted into other currencies. 

According to the Bank of Russia, Russians made P2P trades worth around $428 million monthly from October through March. Moreover, the U.S. Treasury Department has flagged such P2P crypto transactions as a potential way of evading U.S. sanctions.

Binance is not just facing scrutiny in Russia; it is facing a crackdown in the US, involving lawsuits from the country’s top regulators. Moreover, the U.S. Justice Department is investigating Binance for potential violations of U.S. sanctions related to its Russian operations. 

On the Flipside

  • In response to scrutiny, Binance has delisted sanctioned Russian banks from its P2P service. 
  •  Binance is not the only platform offering P2P services in Russia. Other platforms like OKX and Bybit also facilitate P2P trading. 

Why This Matters

Binance’s potential exit from Russia, including the shutdown of its P2P service, could drastically alter the crypto trading landscape in the country. Traders who rely on Binance for ruble-based transactions may need to seek alternative platforms. 

Read more about Binance’s efforts to comply with Western sanctions: 

Binance Delists Sanctioned Russian Banks from P2P Service

Read more about the scams targeting FTX users: 

Beware: FTX Users Targeted by Scam Phishing Emails

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.