Binance Faces Legal Risk Over Russia As Analysts Speculate An Approaching BNB Collapse
Key Takeaways:
Binance could face trouble due to its operations in Russia.
Meanwhile, analysts speculate that BNB might still face a liquidation crisis.
BNB’s price continued to hold above $205.
NEW DELHI (CoinChapter.com) — According to a Wall Street Journal report, Binance could face trouble due to its operational ties in Russia. The report noted that Binance might have skirted the sanction laws imposed on the country following the Russia-Ukraine war.
The US Justice Department had been probing Binance’s possible sanctions violations, alleging that the exchange allowed Russian citizens to illegally access the exchange. The WSJ report claimed that “externally compiled data” showed Binance handled substantial trade volumes in rubles.
Binance allowed peer-to-peer trades of rubles for digital assets while involving banks on Western blacklists, WSJ claimed, citing user screenshots and official chat group messages.
However, a Binance spokesperson told WSJ that Binance had no relationship with any Russian bank “whatsoever.”
How Russians Are Using Binance To Hack Sanctions
The sanctions imposed against Russia prohibit Russian entities, sanctioned or otherwise, from wiring rubles to bank accounts abroad or converting them to other currencies. Russia turned to crypto once the West imposed economic and financial sanctions against the country.
Russian citizens have resorted to exchanging rubles for stablecoin and then swapping the stablecoin for fiat currencies to skirt the sanctions. WSJ stated that Binance remained one of the most popular cryptocurrency exchanges in the region.
Moreover, peer-to-peer services have been one of the main ways to convert rubles into crypto. The WSJ reported that Binance’s peer-to-peer services allowed Russians to make trades worth $428 million monthly between Oct 2022 and March 2023.
Users wrote about using Russian banks like Rosbank and Tinkoff to make peer-to-peer trades on Binance in the exchange’s Telegram chat group.
One way Russians get funds to Binance is through a firm called Advanced Cash or Advcash. Binance has been a partner with the firm since 2019. However, Advcash operations have been highly secretive, resulting in even Binance employees raising questions about the firm’s legitimacy.
WSJ alleged that Advcash provided users with a “payment rail” to move funds between their Advcash and Binance accounts to facilitate trading. Interestingly, no information is available regarding Advcash’s ownership details or its executives.
BNB Liquidations Nigh? Yes, Say Analysts
Meanwhile, speculations of BNB liquidations continued doing the rounds on X. Crypto investor Mike Alfred stated in a post that Binance CEO Changpeng Zhao continued dumping Bitcoin to hold up BNB’s price.
BNB is bleeding out. I expect a $200 break, potentially within 48 hours. After Binance shuts withdrawals for all customers, BTC will rally. Could even see a God candle.
Mike Alfred stated in his post
Another crypto investor and analyst, Matthew Hyland, agreed with Alfred, commending the trader for the warning.
However, several users stated that Binance closing down would likely be a bearish turn of events for the crypto sector. Hyland stated that Binance’s death would likely decrease the “risk for the whole market” and make it more “investable” in the long run.
Additionally, Binance’s closure could help increase Bitcoin’s dominance in the market, lining the crypto up for a rally.
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Filed under: Bitcoin - @ August 23, 2023 3:07 pm