Crypto-exchange may make the wrong decision.
The Russian branch of the Binance crypto exchange says it has received a notification from Roskomnadzor that the site is listed in the domain name registry, which could potentially get a ban in Russia. The crypto exchange stated that “we also continue to provide services to Russian users in full, and the funds of customers are safe.”
Based on correspondence with users in the Binance Russia account on the social network Vkontakte, we can assume that the organization may take some technological measures to stay afloat in Russia.
Meanwhile, the situation with the Binance crypto exchanges is an example of the fact that such a platform, claiming to be a major player in the Russian cryptocurrency market, should be more attentive to the issues of interaction with state authorities. Attempts to technologically circumvent Roskomnadzor’s ban are likely to lead to tougher measures against Binance Russia, as well as negatively affect the entire cryptocurrency segment of the Russian economy, so moving in this direction would be the wrong decision of the platform.
For Binance Russia, the only way to guarantee a guaranteed existence in the Russian economic field can be maximum financial transparency, as well as constant dialogue with the state authorities in Russia. It is worth noting that on February 21, the Financial Services Agency of Malta issued a statementrefuting the information circulating on social media that Binance has a headquarters in this island state, and has not received a license to work there.
Changpen zhao, the head of Binance, responded with a series of tweets in which he stated that Binance did not really have a headquarters in the island nation and “is not an operational organization in Malta”.
There is a mix of truth, FUD & misconception. https://t.co/9rMMAmc1G9 is not headquartered or operated in Malta. This is old news & has always been the case, hence there is quite a bit of FUD turning this into a breaking story. The community’s comments show that understanding. https://t.co/eXCq8rO1Ue
— CZ Binance (@cz_binance) February 21, 2020
There is information that organizations that have the word “Binance” in the name are found in the registties of legal entities of the Cayman and Seychelles. However, official confirmation that these companies are related to the Binance crypto exchange has not yet been found. Exactly as well as explanations of what kind of legal entity the site provides services to Russian users and what appropriate permissions it received for it.