- The exchange’s role in evading international financial scrutiny is likely behind this move.
- Similar actions were taken with Russian banks last week by the crypto exchange.
Binance no longer accepts Banco de Venezuela as a funding source for its P2P trading service. Similar actions were taken with Russian banks last week, so this is certainly an attempt to comply with international financial crackdown.
Users in Venezuela claim that Binance has removed Banco de Venezuela as a P2P payment option this week, following a similar pattern of withdrawals of Russian banks. The exchange’s role in evading international financial scrutiny is the clear impetus for this move.
Complying With Sanctions
Grupo Santander, a private holding corporation, handed over it to the state for around $1 billion in 2009. In 2018 and 2019, the U.S Treasury Department levied sanctions on leaders and connected entities in the Venezuelan government in reaction to the suppression of protesters in 2014 and 2017.
The WSJ reported last week that Tinkoff Bank and Sberbank were available as transfer methods on Binance, sparking a renewed interest in whether or not sanctioned institutions were included on crypto P2P payment alternatives.
On the same day, Tinkoff and Sberbank disappeared from the Binance P2P platform. Reporters on August 25 cited a representative for Binance as confirmation that the sanctioned institutions had been completely removed off the list. Also, on August 28, OKX and Bybit, two other prominent cryptocurrency exchanges, followed Binance’s lead and stopped accepting deposits from Russian banks under sanctions.
Based on the results of the most recent assessment, Binance stated on Sunday that it would disable 39 liquidity mining pools this week. On September 1, 2023, it is anticipated that these 39 liquidity pools would cease operations due to their alleged inability to pass this evaluation.
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