Binance has severed its relationship with five sanctioned Russian banks that were previously listed on its peer-to-peer (P2P) service, allowing users to transfer funds in rubles – the country’s native currency. This decision was made in order to comply with local and global regulatory standards and sanctions rules, according to a Binance spokesperson who told journalists, “When gaps are pointed out to us, we seek to address and remediate them as soon as possible. In line with our ongoing commitments, payment methods on the Binance P2P platform that do not fit with our compliance policies are not available on our platform.”
The Wall Street Journal first reported the news, noting how Binance was helping Russians move money abroad, which puts the exchange in a legally precarious position. This news follows several legal challenges Binance has faced this year, including a lawsuit from the U.S. Securities and Exchange Commission (SEC) for allegedly not complying with federal securities laws. Additionally, two of the largest credit institutions, MasterCard and Visa, ended their partnership with Binance earlier this week.