Binance has ended its relationships with five Russian banks facing sanctions concerning the exchange’s ruble fund transfer service. The move follows criticism from The Wall Street Journal (WSJ) for featuring sanctioned banks like Tinkoff and Rosbank as options, raising concerns about possible sanctions violations.
The WSJ highlighted Binance’s operational ties in Russia and its role in ruble-to-digital asset transactions, particularly with sanctioned banks. The US Justice Department was investigating Binance for potential sanctions breaches, alleging unauthorized access for Russian citizens.
However, Binance denied affiliation with any Russian bank, asserting its commitment to enforcing global sanctions rules. The exchange removed sanctioned banks from payment methods after they resurfaced using coded terms.
Binance has faced legal challenges, including a lawsuit by the SEC alleging violations of securities laws, particularly aiding Russians in overseas fund transfers. The European Council imposed sanctions on Russian banks such as Tinkoff and Rosbank, while the US imposed sanctions on several entities, restricting ruble transfers.
To bypass sanctions, Russians have turned to cryptocurrencies, and Binance’s P2P services reportedly facilitated significant trades, amounting to $428 million monthly between October 2022 and March 2023.
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