Binance Continues to Offer its Service to Russian Citizens.
- The new Binance head of sanctions claimed the company only serves unsanctioned Russians.
- Binance believes there is a need for clarity from the EU on its sanctions against Russia.
- Binance has struggled to observe local policies in different regions. As a result, the exchange has had its offerings halted in some countries.
The rapid growth of cryptocurrency from a speculative investment to a world-class asset has prompted governments worldwide to find ways to regulate the industry. Platforms like Binance have not had an easy ride with regulators in some countries. The crypto exchange has had to withdraw its services from some regions due to strict policies in such places.
Binance’s most recent criticism comes from its alleged support for Russia. The Eastern European country has been subjected to sanctions from both the United States and the European Union for its continued attacks on Ukraine. Some crypto exchanges have halted their service to Russia, while others have adopted a rather neutral approach.
Binance has not withheld its services from unsanctioned citizens, making them eligible to use the exchange. However, the company claims that offering its services to unsanctioned Russians does not mean it ignores sanctions on the nation. The platform’s Global Head of Sanctions, Chagri Poyraz, said of the company’s policies,
We do obviously follow all the EU sanctions, but there is room for improvement when it comes to clarity. […] We are trying to follow sanctions as they are. The challenge is not overdoing but doing what you’ve been told. The regulation has to be clear.
Poyraz also believes a conversation between Binance and the EU is important. However, such discussions have yet to take place. Poyraz claimed that Binance had kept a close watch on the situation in Ukraine.
The EU’s sanctions on Russia are the latest attempt to weaken the country’s economy and resolve. Russia recently began relying on cryptocurrencies for international payments, especially with China. But world leaders hold Moscow accountable for its actions against a democratic nation.