Binance Looks For Larger Footprint in Russia

Binance wants to expand its cryptocurrency exchange in Russia, even as that country’s central bank has called for ban on digital tokens.

“Our goal is to obtain a license and conduct legal business where the regulation allows,” Binance Eastern European Director Gleb Kostarev said in an interview with Reuters Thursday (Jan. 27).

Kostarev added that the company is hoping Russia will take a progressive approach to regulating cryptocurrencies, which could in turn influence the actions of its neighbors.

Kostarev said Russia, which sees roughly $5 billion a year in crypto transactions, was of strategic important for Binance. The company recently named three new executives to positions in Russia and the Ukraine in hopes of strengthening its position in those nations.

“In Ukraine, Kazakhstan and Uzbekistan they are more loyal to cryptocurrencies and are taking steps towards liberalisation, rather than restriction,” he said. “But local regulators are taking these steps with an eye on Russia.”

Learn more: Binance Names New Leaders for Russia, Ukraine

While he described the central bank’s call for a ban as harsh, Kostarev added that “For now, we consider this as an invitation to dialogue with the regulator.”

Russia had long opposed cryptocurrencies, saying they could be used to fund illicit activities. In 2020, it gave them legal status but forbid them for use in payments. That same year, a Russian telecom regulator put Binance on a blacklist — which has since been lifted —  for “disseminating prohibited information,” after it distributed data related to the acquisition of digital coins.

Read more: Finance Minister: Russia Should Regulate, Not Ban Crypto

Earlier this month, the Bank of Russia issued a report warning the “potential financial stability risks associated with cryptocurrencies are much higher for emerging markets” and said it could create a market bubble that led to financial instability.

The bank proposed blocking financial institutions from conducting operations involving crypto, as well imposing a ban on crypto exchanges.

Meanwhile, Ivan Chebeskov, the head of the policy department at Russia’s Ministry of Finance, said earlier this week that the country needs to regulate cryptocurrencies instead of banning them. Reuters notes that Russian President Vladamir Putin has called for the central bank to find a consensus on how to deal with the digital currencies.