Binance’s native cryptocurrency BNB coin has come under severe selling pressure recently amid reports of troubles at the exchange. The latest allegations from the U.S. Department of Justice (DoJ) are that Binance has been violating the US sanctions on Russia.
On Tuesday, August 22, the token experienced a decrease of up to 3.6%, reaching $203.59, which contributes to its total year-to-date loss of approximately 15%. This decline has occurred despite the significant surge of the crypto benchmark, Bitcoin, which has advanced by over 50% since December and represents roughly half of the market’s $1 trillion valuation. Presently, BNB holds a market capitalization of about $32 billion, positioning it as the fourth-largest cryptocurrency asset.
Crypto exchange binance offers trading fee discounts to BNB holders and they can later use the tokens to settle fees on the BNB Smart Chain.
Recently, crypto exchange binance has been having a very tough time dealing with regulators and its channel partners. Amid all the regulatory allegations, Checkout.com was the latest to stop servicing Binance as a payment service provider.
US DoJ – Binance Violating Russia Sanctions
After the US sanctions on Russia last year following Ukraine’s invasion, Binance scaled back its operations in the country. However, externally compiled data shows that Binance still continues to handle substantial trading volumes in Russian Ruble.
The WSJ report notes that clients have the ability to convert funds from sanctioned banks into balances at Binance using intermediary layers. Additionally, Binance facilitates peer-to-peer exchanges of rubles for digital tokens, a process often involving banks listed on Western blacklists. Evidence from company websites, user screenshots, and messages within official chat groups substantiate these actions. Speaking on the development, a Binance spokesperson said:
“Binance follows the global sanctions rules and enforces sanctions on people, organizations, entities, and countries that have been blacklisted by the international community, denying such actors access to the Binance platform”. Binance has “no relationship with any banks whatsoever, in Russia or elsewhere”.
A person familiar with the matter noted that the Department of Justice is conducting an investigation into Binance regarding potential breaches of U.S. Binance has communicated its actions to address authorities’ concerns and expressed its commitment to transparency. It is also willing to cooperate with regulatory bodies and law enforcement agencies.
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