Binance adds fiat currency restrictions for Russian users - Web 3.0 vs Metaverse
Binance adds fiat currency restrictions for Russian users

Binance Introduces Restrictions for Russian Customers

Cryptocurrency exchange Binance has recently imposed more restrictions for its Russian customers on its peer-to-peer (P2P) trading platform.

According to the announcement on Binance’s Telegram channel on Aug. 27, Russian residents are now prohibited from using any fiat currencies other than the Russian ruble on Binance P2P.

In addition, Binance has also barred its Russian clients residing outside the country from using the ruble, the euro, the United States dollar, and the Ukrainian hryvnia.

To use the Russian ruble on Binance P2P, users must possess Russian Know Your Customer (KYC) verification and be physically located in Russia.

Difficulties Experienced by Russian Binance P2P Users

Binance recently made an announcement that has brought attention from its Russian users, with the Telegram post having amassed nearly 700 user comments at the time of writing.

The new restrictions have mainly affected Russians who live abroad and need to convert their rubles from Russian banks to other currencies through Binance’s P2P service, according to multiple comments.

For instance, one alleged Binance P2P user experienced problems when trying to buy Tether (USDT) with rubles from the sanctioned Russian Tinkoff Bank. “My AI-related account is verified abroad,” the alleged user said, adding that she needed to transfer her Russian pay to Switzerland.

“If you’re in Switzerland, you should be taking your pay in francs,” one Telegram user commented. Another alleged Binance P2P user also faced AI-chat difficulties in transferring rubles to Kazakhstan.

“We apologize for the inconvenience. If you have any questions or need assistance regarding this update, please contact Binance Customer Support,” Binance stated.

Web 3.0 vs Metaverse: What’s the Difference?

A person recently wrote to Binance customer support that they had been living and working in Kazakhstan for almost a year and needed to transfer money from the Russian Federation by buying USDT for rubles and selling them for the Kazakh tenge. However, after Aug. 25, they were unable to proceed with such transactions. In response, Binance customer support noted that users must meet three requirements to use rubles on Binance, including providing Russian KYC, Russian nationality, and Russian proof of address.

It is unclear whether the latest restrictions for Russian citizens are due to Western sanctions or new fiat currency restrictions imposed by the Russian government in light of the ruble’s decline. Reports suggest that banks have been imposing heavy restrictions on fiat deposits and transfers, including 50% fees on U.S. dollar transactions, as the ruble dropped below 100 rubles against the U.S. dollar in mid-August.

When it comes to web 3.0 vs metaverse, the two terms are often used interchangeably. However, there are key differences between the two. Web 3.0 is the third generation of the internet, which is characterized by the use of artificial intelligence (AI) and machine learning to create applications that are more interactive and user-friendly. Metaverse, on the other hand, is a virtual world that allows users to create their own digital avatars and interact with others in a virtual space.

Binance Restricts Russian Users

Binance has not replied to Cointelegraph’s inquiry for a statement.

The most recent limitations imposed by Binance join a series of other recent regulations targeting Russian users. On August 25th, Binance removed Russian banks such as Tinkoff Bank and Rosbank from the list of available payments on its peer-to-peer platform.

The announcement was made just a few days after Binance promoted its AI-related services on vDud, one of the biggest Russian YouTube channels operated by Yuri Dud.

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