Binance, a leading cryptocurrency exchange, is pondering its future in Russia, and a complete withdrawal from the market isn’t off the cards. Russia is a bit market for crypto trading, mining and investing in general. Will this lead to yet another crypto crash?
Why is Binance might Exit Russia?
Due to escalating sanctions from nations like the United States, Binance is contemplating its operational status in Russia. As mentioned in an August 28 report by The Wall Street Journal, a representative from Binance expressed that every potential route concerning its Russian operations is being evaluated, even an outright departure.
Recent Actions
The possibility of this exit comes in the wake of Binance’s decision to delist certain Russian financial institutions under sanctions from its peer-to-peer transaction platform. Moreover, they’ve placed limits on the use of fiat currency for users based in Russia.
Other Exchanges’ Moves
Following Binance’s lead, exchanges Bybit and OKX have similarly excluded select Russian banks from their peer-to-peer transaction methods.
Russia’s Digital Currency Exploration
Amidst this, Russia’s central bank has unveiled plans to commence trial runs for digital rubles. Their ambition is to integrate this digital currency broadly by 2027.
Binance’s Global Operations
Binance stands out as a global exchange with operations in numerous countries, but without a physical central office. However, its operations in Russia have been met with resistance from regulatory authorities. Meanwhile, in the US, the exchange faces challenges, too. Binance, its U.S. counterpart Binance.US, and the CEO, Changpeng Zhao, are embroiled in a lawsuit initiated in June by the Securities and Exchange Commission over allegations of unregistered securities. Furthermore, reports suggest that following the recent events in Ukraine, the Justice Department is probing Binance for potentially breaching U.S. sanctions.