Binance Imposes Restrictions on Russian P2P Users – Cryptocurrency Exchange Enforces Sanctions

Cryptocurrency Exchange Binance has placed new limitations on Russian users due to recent European sanctions. The platform has restricted access to peer-to–peer (P2P) transactions with U.S. dollars and euros for customers based in the Russian Federation.

Binance Bars Russians from Utilizing US Dollar And Euro on Its P2P Platform

The world’s leading crypto exchange, Binance, has enforced restrictions on P2P transactions in U.S. Dollars and Euros for traders located in Russia. This is in line with the 10th round of EU sanctions brought in following the first anniversary of the Ukraine war in late February. Representatives of the firm explained the decision in comments to crypto media in a language other than English.

The measures mean that citizens or foreign nationals based in the Russian Federation will no longer be able to use the fiat currencies of the United States or the Eurozone through Binance’s P2P service. Moreover, EU citizens will be disallowed from transacting in Russian rubles.

To enable customers to continue their crypto trading, a spokesperson for Binance suggested that affected users can choose from other available fiat currencies. Forklog and RBC Crypto reported that when users attempt to make transactions in euros or dollars, the platform prompts them to choose a local currency, in accordance with the rules applicable to the country identified during account verification.

Russian crypto enthusiasts have resorted to peer-to–peer crypto trading after major payment processors such as Visa and Mastercard suspended their activities in Russia in March 2022 following the SWIFT transfer ban caused by Moscow’s invasion of Ukraine on Feb. 24.

In April, Binance had restricted access to its services for users linked to Russia with assets exceeding €10,000, as per a previous package of sanctions adopted by the European Union. Earlier in the same month, EU member countries agreed to ban the provision of “high-value” services for crypto assets to Russian businesses and citizens.

These restrictions do not apply to the purchase and sale of crypto assets in Russian Rubles and other digital currencies such as stablecoins and dollars pegged to the euro and the dollar. Those who prefer fiat currency will have to switch to local currencies or use services from other exchanges.

Both sides in the conflict can benefit from cryptocurrency exchanges. Russians and Ukrainians can also evade currency restrictions imposed by their own governments. Last week, Binance and Ukraine-based exchange Kuna initiated temporary suspensions of payments using bank cards and Ukrainian hryvnia.

Are there any other exchanges that could introduce similar restrictions for their Russian users? Let us know in the comments below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy journalist from Eastern Europe who enjoys Christopher Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Apart from writing, his other inspiration sources are crypto, blockchain, fintech and international politics.