Binance has recently faced heavy regulatory scrutiny in various jurisdictions, particularly in the West. Now he is faced with a new challenge. Let’s look at the details.
Is Binance connected with blacklisted Russian entities?
An August 22 report from the Wall Street Journal presents a striking situation. Accordingly, there is a claim about Binance. It continues to operate on five Russian credit institutions blacklisted by the Western powers. According to the report, Russian customers can trade on Binance using any of five Russian credit institutions, including Tinkoff Bank and Rosbank, to settle payments.
WSJ also features moves by Binance volunteers, popularly referred to as Binance Angels. Accordingly, he reported to people on Telegram that the exchange had told him there were no trading restrictions on Russian customers.
limited state
The news also has another interesting aspect. Accordingly, there were reports that the crypto exchange Binance had removed the €10,000 limit previously applied to Russian accounts.
The news draws attention in this aspect as well. The news contradicts Binance’s public statement regarding its activities in the heavily sanctioned country. Last year, the stock market referred to EU sanctions. Accordingly, it has imposed strict sanctions on Russians with assets exceeding €10,000 on its platform.
Legal battle for Binance
This news will further complicate Binance’s relationship with regulators, which has frayed. The stock market is struggling to operate in many European countries. On the other hand, this situation caused the stock market to withdraw from countries such as the Netherlands, Germany and Cyprus.
The latest situations raise concerns for the stock market, which is also facing legal difficulties in North America. It also led to the stock market’s withdrawal from Canada and legal action from the U.S. Commodities and Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). There are reports that the US Department of Justice is preparing to take criminal action against Binance and its CEO, Changpeng Zhao, for violating US anti-money laundering laws.
For Binance, the process also negatively affects BNB
With the wave of regulatory pressure facing the exchange, several of its key executives have left the exchange. Binance and some of these executives claim to have left for other reasons. However, many people think they broke up due to legal issues.
Legal challenges for Binance have also caused its native token, BNB, to see a massive drop in value. BNB is currently trading at $206. Accordingly, it has been at its lowest price for over a year. On the other hand, when we look at cryptokoin.com, it is at risk of falling below $ 200.
