Binance Halts P2P Support For Venezuela’s Largest State-Owned Bank

Binance has permanently suspended the option to choose Banco de Venezuela from its P2P service application, denying users access to this payment option. The latest action is part of an initiative to maintain compliance with regional and global regulatory benchmarks targeted at digital asset service providers.

Exchange Stops Venezuelan Bank From P2P Services

Venezuelan users of the world’s leading exchange’s peer-to-peer (P2P) platform, Binance, have revealed they could not access its services on Banco de Venezuela, the country’s most widely used bank. Hence, they cannot use the bank as a payment option.

However, P2P services are still available for other private financial institutions. The Binance Spanish Telegram group dubbed “Binance Angels,” which acts as the brand’s ambassadors, claimed that the bank’s omission was due to compliance issues.

Part of the group’s statement indicates that the private financial institution failed to comply with the exchange’s policies and has become unavailable for use by the platform’s users. However, Binance has yet to release an official statement addressing the reason behind its recent action.

Interestingly, some observers believe the move was forced on the exchange by the United States as part of its sanctions on the Venezuelan government. According to them, since the exchange’s P2P services have been utilizing the Interbank Mobile Payment system and transfer to particular banks, the option should still be available on Banco de Venezuela.

Nevertheless, the group warned that users should avoid any transactions involving Binance P2P with the bank as the exchange will not mediate on behalf of users in the event of a failed payment. Users on the social media platforms have revealed that Binance P2P customer support has also cautioned them against using the bank as it would lead to suspending their account with the exchange.

Two Exchanges Slap Russian Banks With P2P Suspension

Meanwhile, Binance and Bybit have permanently paused P2P transactions for five sanctioned Russian banks in the last few days. The move comes after some reports claimed that the exchanges allowed users to evade international sanctions by transferring funds to and from sanctioned banks using P2P transactions.

Binance said in a statement that it had “suspended all P2P fiat trading pairs involving sanctioned Russian banks”. The exchange added that it is committed to complying with all applicable sanctions.

Similarly, Bybit also stated that it had stopped P2P trading for sanctioned Russian banks in line with its move to comply with international conventions against the country. Moreover, the suspension of peer-to-peer transactions for sanctioned Russian banks is also evidence that cryptocurrency exchanges are concerned about complying with global regulatory actions.

Concerns have grown recently that crypto assets are still being used to avoid sanctions. With their latest move, Binance and Bybit demonstrate their commitment to following the law and preventing cryptocurrency from being used illegally.

Binance has also recently announced the suspension of its crypto card for Argentines and other Latin America nations. The decision comes as the SEC’s lawsuit against the exchange impacts the company’s operations worldwide.

The Binance crypto card is a prepaid debit card that allows users to spend cryptocurrency at Mastercard-accepting merchants anywhere in the world. The card was introduced in Argentina in 2020 and quickly gained traction among crypto enthusiasts, with over 100,000 users.

The SEC lawsuit, however, has cast a cloud over Binance’s global operations as the firm continues to challenge the regulator in an ongoing legal battle.

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