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Binance P2P excludes sanctioned Russian banks from payment options.

Binance responds to criticism, removes “yellow” and “green” payment options representing sanctioned Russian banks from its P2P service. Confirmed on August 25th.

Binance’s P2P exchange service, which facilitates cryptocurrency trading and acts as an escrow service,

has faced scrutiny regarding its listing of sanctioned Russian banks.

On August 22nd, The Wall Street Journal reported that Binance had included banks like Tinkoff and Rosbank as transfer methods,

raising concerns about potential sanctions violations.

Following the reports, on August 24th, various Russian news outlets indicated that Binance had removed the sanctioned banks from its payment methods list.

However, the banks reappeared under code words “yellow” and “green,” with “yellow” representing Tinkoff and “green” representing Rosbank.

By August 25th, The Wall Street Journal confirmed that the sanctioned banks had been removed from the list.

A Binance spokesperson stated that the removal occurred after they discovered users were exploiting the service to bypass sanctions.

The spokesperson emphasized the exchange’s commitment to compliance with regulatory standards.

Currently, 16 payment methods remain available for converting Russian rubles to crypto on Binance’s P2P exchange,

including Raiffeisenbank, Russian Standard Bank, Payeer, AdvCash, and others.

Notably, neither Tinkoff nor Rosbank, nor their code word equivalents, are listed as payment options.

Binance P2P Users Exploit ‘The Green Bank’ Loophole Despite Official Removal; Peer-to-Peer Crypto Marketplaces Under Scrutiny

Despite their official removal, Binance P2P users continue to advertise sales with “the green bank” as their preferred payment method.

Although they list other acceptable payment methods such as Russian Standard Bank or Ak Bars Bank, the users explicitly state in their “advertiser’s terms” that they will only accept transfers using “the green bank.”

This allows them to bypass the sanctioned payment methods while using Binance P2P for cryptocurrency transactions.

Peer-to-peer crypto marketplaces have been a subject of controversy, with proponents arguing for their necessity to prevent government payment censorship, while critics claim they are exploited by criminals for illicit fund transfers.

Previously, LocalBitcoins was one of the most popular peer-to-peer marketplaces, but it was shut down earlier this year, leading some users to migrate to Binance P2P.

On August 25th, Ray Youssef, co-founder of Paxful, expressed concerns about the centralization and vulnerability of P2P marketplaces to government shutdowns.

In response, he is developing a new marketplace called “Civ Kit” designed to be more resilient against government interventions.

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