It’s fair to say that the world’s largest crypto exchange – Binance, has had more than a few rough months this year. Many of its rivals fell in the past year and it was widely thought that Binance will never be dethroned. However, many problems developed since the beginning of the year, with Binance facing legal woes in the USA and Europe. It has pushed the company to seek new markets in Dubai, but other problems continue to pop up.
Last week, it was reported that Binance was helping Russians move money abroad due to the uncertainty of the Russia-Ukraine war. The company denied those claims instantly, but has been getting into hot water recently, and this is an extra problem it doesn’t want or need. Due to that, its CEO Changpeng Zhao is seriously considering all options for that market, including a full exit.
Binance Drops Russian Banks from P2P Service
Since it doesn’t want mounting problems, the crypto giant has already been slashing weight off its Russian business. The first thing it did when the accusations arose is to cut Russian banks from its peer-to-peer service. Traders are discussing workarounds, but at the same time, Binance has acted immediately in order to diminish the risks of the fairly serious accusations.
A spokesperson for the company has said that everything’s on the table, including a full exit. Withdrawing its services from Russia also comes at a time when Russia is sanctioned from many countries led by the United States, and that might be why pressure is building on the crypto giant.
After it dropped Russian banks from the P2P service, others acted right away. OKX and Bybit did the same, dropping service for some Russian banks. The Russian central bank announced in August that it’s planning to start testing some operations with the digital Ruble, which should rival any cryptocurrencies as soon as 2027.
No Headquarters Yet
Binance is a global crypto powerhouse and the only one without headquarters. That’s one of the reasons why authorities hate it, although the real reason is a dislike for crypto. The traditional financial system isn’t without risks, but it doesn’t believe that crypto – or giving free power to the people, is the real deal. Due to that, all crypto exchanges have been facing obstacles and pushbacks from authorities, including Binance – the world’s largest one.
For a time, Binance was thought to be untouchable as it supposedly does everything by the book. But, the authorities are simply not convinced in it. It has received substantial pushback in the past year or so, and its operations in Russia may suffer as a result.
Luckily, the crypto exchange giant hasn’t been sitting on its hands. It immediately tried finding new regulatory areas where it could exist, including Dubai. It has received the go-ahead – a license – in Dubai a few months ago, and some have been speculating it may even open its HQ there. But, until things change, authorities will continue hunting it down, and it’s up to Zhao to fight all these attacks.