Binance Drops Banco de Venezuela: Regulatory Compliance behind the P2P Trading Change

<p>In a significant move reflecting efforts to adhere to
international financial sanctions, Binance has dropped Banco de Venezuela from
its peer-to-peer (P2P) trading services. This action comes in the wake of
similar steps taken against sanctioned Russian banks last week.</p><p>Formerly holding the
third spot with over 11% market share, Banco de Venezuela was acquired by the
Venezuelan government in 2009 after being sold by the Spanish Bank Santander for approximately USD $1 billion.</p><p>Binance Navigates
Regulatory Complexities</p><p>However, sanctions were imposed on Venezuelan
government officials and affiliated institutions by the US Treasury Department
in 2019 for allegations of corruption.
While Banco de Venezuela’s removal from Binance’s P2P has raised concerns in
the nation, other private Venezuelan banks like Banesco, Banplus, and BBVA
Provincial remain available for P2P crypto trading.</p><p>The recent attention to
including sanctioned financial institutions as payment options on
cryptocurrency platforms started when Tinkoff Bank and Rosbank appeared on
Binance as transfer methods. However, following a recent report by the Wall Street Journal,
these options were <a href="https://www.financemagnates.com/cryptocurrency/binance-narrows-p2p-services-in-russia-drops-sanctioned-banks/" target="_blank" rel="follow">swiftly
removed by the exchange</a>. The
affected banks have faced sanctions due to Russia’s involvement in the Ukraine
conflict.</p><p>Despite the claims made
against Binance, the <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> denied any involvement with sanctioned banks in
connection with its P2P program. A spokesperson from the exchange stated that
Binance does not have any affiliation with any banks, whether Russia or any
other location, for its P2P services.</p><p>Broader Regulatory Context</p><p>Following Binance’s
move, other crypto exchanges like OKX and Bybit excluded sanctioned Russian
banks from their payment options. ByBit and OKX had allowed Russians to use
cards issued by the sanctioned banks for cryptocurrency purchases through their
P2P platforms. Similar to Binance, these exchanges have ceased such offerings
with the Russian banks, according to a report by <a href="https://www.financemagnates.com/cryptocurrency/binance-narrows-p2p-services-in-russia-drops-sanctioned-banks/" target="_blank" rel="follow">Finance
Magnates</a>.</p><p>Binance’s actions occurred at a time when regulatory attention on the exchange has heightened on a global scale.
The platform is currently <a href="https://www.financemagnates.com/cryptocurrency/sec-lawsuit-heats-up-the-war-between-binance-and-the-us/" target="_blank" rel="follow">facing
legal action</a> in the US
from both the <a href="https://www.financemagnates.com/terms/s/securities-and-exchange-commission-sec/">Securities and Exchange Commission (SEC</a>) and the Commodities
Futures Trading Commission (CFTC).</p><p>Yesterday
(Monday), reports emerged that Binance had decided to <a href="https://www.financemagnates.com/cryptocurrency/binance-dodges-regulatory-bullet-in-belgium-redirects-users-to-poland/" target="_blank" rel="follow">migrate
its users in Belgium</a> to
its Polish subsidiary, Binance Poland. This decision was made after the Belgian
financial market watchdog ordered Binance to cease its cryptocurrency exchange
and custody services in the country, citing concerns over serving users outside
the European Economic Area (EEA).</p>

This article was written by Jared Kirui at www.financemagnates.com.