Binance mulling expansion into Russia

Binance has revealed its ambitions to expand into Russia and neighbouring states.

According to Binance Eastern European Director Gleb Kostarev, “the goal is to obtain a licence and conduct legal business where the regulation allows”.

Kostarev added that Binance hoped for a progressive regulatory approach from Moscow that could influence the approach taken by its neighbours.

He said Russia, where the annual volume of crypto transactions stands at about $5bn, was strategically important for Binance and added it plans to hold a “dialogue with the regulator”.

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.”

A recent investigation by Reuters claimed Binance kept weak money-laundering checks despite promising tougher compliance.

According to the investigation, Binance acted against its own compliance department by recruiting customers in Russia and six other states deemed to be of ‘extreme’ money-laundering risk.

Meanwhile, Russian politicians have pressed for a change of course previously set by the central bank, which has proposed restricting crypto trading and mining because of concerns it may cause financial instability.

They advised that it should instead regulate a business that could draw in more tax revenues.