Binance Joins Russian Banking Union

Cryptocurrency exchange giant Binance has joined the Union of Russian Banks (ARB), where Russia and the CIS (Commonwealth of Independent States) will head a new crypto division.

Binance joins the Russian Banking Union

Binance, the world’s largest cryptocurrency exchange by trading volume, announced on Thursday that it has joined the Russian Bankers Association, which aims to facilitate dialogue with local authorities, lawmakers and cryptocurrency industry experts.

According to Prime, the cryptocurrency exchange sent a press release on the matter to major Russian media outlets, in which they stated that Russia and CIS chief Olga Goncharova will lead the Center for Expertise, the newly formed expert on digital financial assets and digital currencies ARB.

The exchange claims that its membership will help “facilitate dialogue with federal agencies, legislators, experts in the field of digital financial assets and digital currencies.”

The new “Expert Center” will help synthesize “expert opinions on the circulation of digital financial assets and digital currencies” and provide members with “expert documentation and analysis” on cryptocurrencies and “international experience”. .

She will also engage in dialogue with federal agencies and legislators.

Last month, Reuters reported, the exchange’s local management indicated that they “see the prospect of new regulations that will boost their business.”

Binance’s Eastern Europe director, Gleb Kostarev, said that the exchange “hopes for a progressive regulatory approach from Russia, which could influence the approach of neighboring countries.”

He says:

“Our goal is to get licensed and conduct business legally where regulations allow.”

About the Russian Banking Union ARB

ARB is Russia’s largest banking collective and was established in 1991. It now has 240 members, according to its website, but is no longer ranked as one of the eight largest banks in the country – including giant Sberbank – due to a controversy in 2017. VTB and Gazprom Bank.

In his own statement on the matter, ARB Vice President Anatoly Kozlachkov is quoted as saying:

“We have extensive experience working with Russian regulators that represent the interests of the banking community. We want to be more positive about cryptocurrencies and contribute to the development of balanced regulation. We will take market interests into account and ensure that Russian citizens are protected from fraud.”

Izvestia reports that the ARB has stated that its members “will have no problem” enforcing crypto-related measures proposed by the Treasury Department in a bill regulating money electronically. Electronic will be announced yesterday.

Izvestia claims to have spoken to a number of banks, including the “Big 8”, none of which say they see problems with the measures. These measures propose creating a system where all cryptocurrency transactions are conducted through banking platforms, where they can be tracked for tax evasion and money laundering violations.

This is the same system that currently exists in South Korea, where cryptocurrency exchanges have to make individual contracts with banking partners. In this East Asian country, however, banks must also assume all the financial risks involved, which the system proposed by Russia may not do.

Russian banks and related experts have said it “could take several months to create such a system,” with some suggesting the cost of creating the technology platforms will likely be borne by the customer. But banks seem generally positive about their adoption prospects.

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