Binance restrictions in Russia in 2024

Binance is one of the popular trading and investment platforms in the Russian Federation. Therefore, the introduction of Binance restrictions for Russia in 2024 did not go unnoticed in the crypto community. Unlike other platforms, Binance did not block the accounts of ordinary users. In April 2022, the exchange limited the maximum balances of Russians to 10 thousand euros. Some clients moved to other platforms, but many remained. In 2023, this requirement was canceled. Russians were also allowed to replenish balances from cards in rubles. Other restrictions for the Russian Federation are still in effect.

Binance’s position on Russia in 2024

According to Chainalysis, Russia ranks 9th in the world in terms of investment in digital assets and 2nd in terms of the involvement of adults (22-50 years old) in buying cryptocurrency. Therefore, Binance has always been loyal to Russians. The exchange was one of the first to add rubles to the listing and translated the interface into Russian.

In 2022, the platform was forced to introduce restrictions for users. However, Binance was not completely blocked in Russia. The exchange closed only the accounts of persons who fell under sanctions. In 2023, part of the restrictions were lifted.

Before the introduction of sanctions

At the end of 2019, the founder of the exchange Changpeng Zhao visited Moscow. He talked to traders and shared plans to open a division in Russia. Zhao noted that the Russian Federation is a key participant in the crypto market, so the exchange will actively develop in the country.

After the introduction of sanctions

In March 2022, cryptocurrency platforms began blocking the accounts of Russians even before the recommendations of international regulators. Binance did not support the trend. After the introduction of sanctions in April 2022, the exchange was forced to limit functionality. Withdrawal and replenishment in rubles using cards were closed for Russians, sanctioned banks were removed from the P2P listing. Russian residents were allowed to keep on their balance no more than 10 thousand euros in equivalent.

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In October 2022, another set of sanctions banned financial services to clients from the Russian Federation. Many well-known services left the Russian market – Kraken, Crypto.com, Blockchain.com. Changpeng Zhao took a pause to make a decision. In the meantime, the exchange was in active negotiations with regulators to find a way to continue serving traders from the Russian Federation and other CIS countries.

Binance is now operating in Russia. However, the platform has tightened control over IP addresses. Many clients received a requirement to confirm their place of residence to access the trading terminal. Soon it became optional.

Citizenship and residency

Restrictions affected all users with Russian passports. To expand the pool of available functions, it is necessary to confirm residency in another country. For example, you can provide a residence permit and a lease agreement in the European Union, the CIS or the USA.

Reasons for easing restrictions

Binance maintains a network of representative offices in different countries. Legal entities registered in the EU cannot provide financial services to companies and individuals from Russia. However, such clients are entitled to be served by units in other jurisdictions.

In 2023, Binance received licenses to operate in France, Italy, Sweden, and Spain. After that, regulatory control over the actions of the exchange decreased. Therefore, the management decided to soften the conditions for Russian clients. The blocking of Binance in Russia today is not so tough. Against the background of problems with American regulators, the loss of the Russian market was tangible.

Current rules of Binance in Russia

Instructions for working on the exchange in Russia can be found in the Support section. Any changes in the rules for Russian and other clients are announced on the “Latest News” page. Given the popularity of Binance, the information is duplicated by leading online publications within a few hours.

What features are not available for Russians

Binance strives to offer customers a wide range of services, but this is not always possible. The exchange strictly complies with the regulations of the regulator. Therefore, the following options are not available to users from Russia (individuals and companies):

• Binance Card debit card. It can be ordered only by residents of Europe, the USA and some other countries.
• P2P transactions with national currencies, except for the ruble. Binance customers can change coins only for the fiat of their country.
• Withdrawal of RUB to cards and e-wallets. The exchange has suspended support for Advcash and Visa/Mastercard ruble accounts.
• Use of Sberbank, VTB and other sanctioned financial organizations’ cards for P2P transactions.

Registration of Russians on Binance

Russian citizens are free to create accounts on the platform. To register, you can use any email address (including in the ru-zone) or cell phone. The instructions are as follows:

1. Open the official website.
2. Choose the method – “Register with phone/email” or “Continue with Google”.
3. Enter your mail address or cell phone.
4. Click on “Next”.
5. Enter the code from SMS or e-mail.
6. Make up a password to log in to your account. Minimum 8 characters, 1 digit and 1 capital letter.

A notification about creating a profile will appear on the screen. You can agree to receive promotional materials. You need to activate 2FA by e-mail to go to the profile:

1. On the next screen, click on the “Get Code” button and enter 6 digits from the SMS.
2. Specify the password and copy the combination from the e-mail.

You must use 2 codes to confirm withdrawal or change security settings. In the future, you can refuse to receive SMS to confirm the spending of money. To do this, you need to connect 2FA with Google Authenticator and select this method as the main one.

Verification of Russian accounts

To work on the Binance exchange, you need to confirm your identity. Without this, access to the functions of the platform is limited. To pass KYC, you need to fill out a questionnaire (specify personal data, ID number and residential address), upload a document. The exchange accepts:

• Russian passports
• ID cards
• Driver’s license
• Residence permits.

You will also need to take selfies with a smartphone or laptop camera. The instructions are as follows:

1. Click on “I want to complete the process on my phone”.
2. Scan the QR code with your smartphone camera to download the app.
3. Sign in to the account, then go to the security settings.
4. The verification page will open. Confirm the use of the camera and place the face in the center. It is better to take a picture in daylight.

According to the regulations, 48 hours are allocated for data verification, but more often the support service confirms the status in 1-2 hours. After passing KYC, you can trade on the stock exchange, use P2P-platform, place assets at interest and withdraw up to $50 thousand per day.

For most users, this limit is enough. If you need more, you will have to provide additional documents. Trading conditions:

• “Plus ” – you can withdraw up to $2 million per day. It will be necessary to provide a rental agreement or receipts of the housing and utilities sector to confirm the address of residence.
• “Extended ” – no restrictions on fiat withdrawals. Need to answer additional questions and send an income tax return.

Buying and selling on the exchange

In 2023, Binance is the leader in trading turnover. In July, daily transactions on the platform are $6.92 billion. More than 600 coins are available for trading. After passing the minimum verification (state-issued ID photo and selfies), users get access to the trading terminal.

Traders from the Russian Federation can work on spot, futures market (with futures and options), open margin transactions.

Investing

Platform clients have access to tools for passive earnings. After confirming their identity, Russians can go to the Earn section. The list of open options includes:

• Deposits with a flexible term. For storing assets on the platform, a small income is accrued (up to 13% per annum). Withdraw coins can be withdrawn at any time with the retention of the reward for incomplete days.
• Staking. You need to choose the locking period – from a few days to 3 months. In case of early withdrawal, clients lose the accrued income.
• Liquidity Farming. It is necessary to block 2 coins in the pool. Increased remuneration is paid for this. Liquidity providers also receive transaction fees.
• Bicurrency investments. Clients make a prediction that the price will be below or above the strike by a certain date. If correct, users receive increased rewards in steiblocins, if incorrect – in crypto coins.
• Range Bound. The tool allows you to make money in a sideways market. The user needs the price to never cross the range boundaries during the subscription period. If the prediction is correct, the investor will receive a reward. In case of error, Binance will retain the amount of risk (1-5%).

Clients also buy cryptocurrency and store it with the expectation of growth. For regular transactions, you can use the “Autoinvestment” tool. The algorithm makes a transaction after a certain period of time (once a day, month) or at price levels.

In addition, you can open a business on mining and connect to the exchange pool. Remuneration will be paid daily to an internal account. There is no minimum amount.

P2P trading

In April 2022, Sberbank, VTB, Promsvyazbank and Fast Payment System were removed from the listing of the peer-to-peer platform. As an alternative, users were offered Binance’s subsidiary project PexPay, which retained all the functions of the main exchange.

After the adoption of another package of sanctions in March 2023, Binance banned Russians from withdrawing cryptocurrency to cards and EPS in dollars and euros. To remove the restrictions of Binance for Russians in 2024, you need to change your residency in your profile (provide a rental agreement in Europe or the United States).

API keys

Customers of the exchange can connect robots that will automatically open transactions according to the chosen strategy. To do this, you need to authorize on the site, go to the API section and issue a key. Traders from Russia can use it after passing the minimum level of verification.

Storage of funds on the exchange

In July 2023, Binance does not apply limits on balances. Users can hold any amount in spot wallets, futures accounts or block assets in Earn.

€10,000 limits

The next package of sanctions, passed in April 2022, included measures to reduce cryptocurrency transactions with clients from Russia. Binance did not stop operating in Russia, but introduced a limit on the account balance – up to €10,000 equivalent. If the total balance on the futures, spot and Earn accounts exceeded this amount, all transactions, except withdrawals, were blocked.

Author: Saifedean Ammous, an expert in cryptocurrency economics.