Binance Lets Russian Customers Buy Crypto With Bank Cards With 1.2% Fee

Key Points:

• Binance now accepts Russian cards, including Visa and Mastercard issued by Russian banks.
• The Qiwi electronic payment system is used for transfers.
• Russia has moved to alternate technologies while regular payment routes between the nation and its commercial partners remain limited.

Binance, the largest crypto exchange in trading volume, has restored the ability for Russians to purchase and sell cryptocurrencies using bank cards and crypto wallets. This was communicated in an email to consumers by the exchange.

According to the announcement, Binance has prepared a unique offer for Russian Federation customers in the form of 0% fees for withdrawing Russian rubles to a bank card (including Visa and Mastercard issued by Russian banks) or an electronic wallet.

Binance’s move to restrict its services in Russia came in response to international sanctions imposed on the country for its invasion of Ukraine. Binance ceased transactions using cards issued by Russian Federation banks in March, soon after Visa and Mastercard withdrew their network services in the nation.

In reaction to EU penalties, Binance has terminated multiple accounts belonging to its significant customers by April 2022. As a consequence, Russian users with more than 10,000 euros in cryptocurrency were barred from making fresh deposits or trading. Individuals with less than 10,000 euros in cryptocurrency were permitted to trade.

But, a year later, in April 2023, Binance seems to have opted to relax restrictions on the Russian market. According to a number of local media outlets, the swap loosened sanctions on Russians.

Notwithstanding subsequent developments, Binance’s stated stance on the topic remains unchanged. A spokesman from the trading platform verified that the platform and its legal entities in the European Union are completely implementing all existing limitations linked to sanctions against Russian persons.

Nevertheless, the exchange does not accept deposits to refill the ruble balance directly but rather via the Qiwi payment provider. The platform charges a fee of 1.2% of the total amount entered. The trading site also facilitates the withdrawal of rubles to a bank card through Qiwi.

Since Ukraine’s invasion, Russia has been progressively barred from essential financial infrastructures such as the Swift network. As a result, the nation has focused on building alternative cross-border payment channels in order to mitigate the consequences of the sanctions imposed in 2022.

The move by Binance to restart transactions using Russian bank cards coincides with Russia’s continuous attempts to build alternative cross-border payment channels. The Central Bank of Russia (CBR), for example, is creating payment gateways to interface with international systems. In this regard, it is collaborating directly with its Turkish colleagues. Meanwhile, Russia and Iran started working on an interbank payment network early this year.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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