Binance plans to expand in Russia to drive growth in the region
Binance, the world’s largest cryptocurrency exchange, wants to expand in Russia and surrounding countries, where it sees the prospect of new regulations that will boost its business, an executive said. act said.
Russian politicians have been urging a change in the central bank, which has proposed restricting cryptocurrency trading and mining for fear it could cause financial instability. They say it should instead regulate a business that can collect more tax dollars.
President Vladimir Putin has called on the central bank to find a consensus on how to deal with the crypto business, something central banks and regulators around the globe are grappling with.
“Our goal is to obtain a license and conduct business legally where regulation allows,” Binance East Europe Head Gleb Kostarev told Reuters, adding that his firm hopes for an approach. Progressive regulatory approaches from Russia could influence the approaches of neighboring countries.
Kostarev said Russia, where the central bank says annual crypto trading volume is around $5 billion, is strategically important for Binance.
He described the central bank’s proposals to restrict transactions as harsh, adding: “For now, we see this as an invitation to dialogue with the regulator.”
Russia has for years opposed cryptocurrencies, saying they can be used to launder money or finance terrorism. It granted them legal status in 2020 but banned their use for payments.
Kostarev said Russia’s approach could now help define how other countries in the region handle cryptocurrencies.
“In Ukraine, Kazakhstan and Uzbekistan, they are more loyal to cryptocurrencies and are taking steps in the direction of liberalization, rather than restriction,” he said. “But local regulators are taking these steps with Russia’s attention.”
The global hash rate, which refers to the computing power used by computers connected to the bitcoin network, has fallen about 20% this month due to political turmoil and blackouts in Kazakhstan, Binance estimates. .
Kostarev said the rate is now recovering.
A Reuters investigation last week found that Binance withheld information about its finances and corporate structure from regulators, even as they welcomed government scrutiny and praised the program. its anti-money laundering program.
A Binance spokesperson replied that the company advocates “technologies and legislation that will put the crypto industry on the path to becoming a secure and well-regulated industry.”
The investigation also found that Binance acted against its own compliance department by recruiting customers in Russia and six other countries deemed “extremely high” for money laundering.
Binance says it has “one of the most sophisticated approaches” to anti-money laundering and counter-terrorism financing enforcement in the financial sector, and its internal risk ratings have been adjusted for a range of variables. .
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