A confirmation on August 25 showed that Binance, a crypto exchange, has eliminated the ‘yellow’ and ‘green’ payment alternatives from the peer-to-peer (P2P) service following criticism for utilizing these code words to represent sanctioned banks in Russia.
The crypto exchange eliminated the ‘green’ and ‘yellow’ payment alternatives from its payment methods list that earlier referred to sanctioned banks in Russia.
Binance P2P Retains Sanctioned Russian Banks in P2P Payment Scheme
Binance P2P exchange service refers to a message board that permits the purchase and sale of cryptocurrency. It also serves as a crypto escrow service. Nevertheless, different from Binance’s central exchange platform, it allows users to handle fiat payments. Additionally, no fiat money Is routed via Binance’s servers.
An August 22 report by The Wall Street Journal claimed that Binance listed authorized Russian banks, for instance, Rosbank and Tinkoff, as transfer methods. This resulted in condemnation that Binance might be acting against sanctions by approving the banks as payment schemes.
Media Outlets Discover Resurface of Code Words for Sanctioned Banks
On August 24, several news outlets reported that Binance had removed these banks from its payment methods list. Nevertheless, they had resurfaced as code words ‘yellow’ and ‘green.’ Sanctioned bank Tinkoff was represented by ‘yellow,’ while sanctioned bank Rosbank was presented by ‘green.’
A Wall Street Journal August 25 report revealed that the approved banks were struck off the list. It cited a Binance representative claiming that the banks’ removal was due to the exchange learning that account holders were utilizing the service to avoid sanctions.
The spokesperson said they regularly update their systems to enhance adherence to international and local regulatory standards. Further, any pointed-out gaps are addressed and rectified within the shortest time possible.
Sanctioned Russian Banks and Code Word Equivalents Entirely Eliminated
On the same day, Binance confirmed the removal of the ‘green’ and ‘yellow’ payment methods. Sixteen payment options are still available for converting the Russian ruble to crypto. This includes Russian Standard Bank, Raiffeisenbank, AdvCash, and others. However, Rosbank and Tinkoff and their code word equivalents are out of the list.
Despite their official removal, users of Binance P2P are still advertising sales and having ‘the green bank’ as the payment option. The users highlight other payment methods in the ‘payment method’ field, for instance, Russian Standard Bank or Ak Bars Bank. However, it is explicitly stated in the ‘advertiser’s terms’ that only transfers made via ‘the green bank’ will be accepted. The strategy has enabled users to use Binance P2P to sell cryptocurrency via authorized payment methods.
P2P Crypto Markets Embroiled in Controversy Prompting Government Shutdowns
Since their initiation, P2P crypto marketplaces have been controversial. On the one hand, proponents claim that these marketplaces are crucial to avert the restriction of government payment.
On the other hand, critics claim that criminals utilize them to transfer illegal funds. Prior to 2023, LocalBitcoins was one of the most famous P2P marketplaces. Nevertheless, it was closed earlier this year, and some users responded by moving to Binance P2P.
On August 25, Ray Youssef, Paxful’s cofounder, claimed that P2P marketplaces are still quite centralized and susceptible to government shutdowns. He also claimed that he was working on a new marketplace referred to as ‘Civ Kit,’ that the government would not shut down easily.
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