Crypto exchange Binance has been blacklisted by Russian federal service Roskomnadzor because it “contains information banned from distribution in Russia.” Via its Russian Telegram channel, Binance made this announcement noting that the data that got it into a hot soup was about the prospect of receiving electronic cryptocurrency (Bitcoin).
Crypto restrictions in Russia
According to the Digital Financial Assets (DFA) bill, it restricts cryptocurrencies as the primary means of payment, so the distribution of data related to cryptocurrencies is prohibited in this country.
At the time, the first deputy governor of Russiaâ€™s central bank, Sergei Shvetsov, noted:
â€œThe Bank of Russia, as a regulator, adheres to the position that crypto purchases are not an investment. It is more like a financial pyramid or roulette games and does not apply to the financial market. Either government or financial intermediaries should not encourage citizens to acquire cryptocurrencies.â€Â
While Binance was blacklisted on June 2 by the Federal watchdog, on September 24, he learned of this status. The announcement stated:
â€œOn September 24, 2020, we received a notification from Roskomnadzor of the Russian Federation about the inclusion of the siteÂ https://www.binance.comÂ in the domain name register containing information prohibited for distribution in Russia.â€
Roskomnadzor keeps a directory of websites censored or blocked in Russia.
Seeking legal minds
Binance has resorted to seeking advice from experts in the legal sector to unlock this stalemate following these limitations.
Fisco, a Japanese crypto exchange, has recently sued Binance for falsely encouraging the cashing out of at least $9 million after the latter was hacked in 2018. The lawsuit alleged that because of lenient KYC rules, Binance was the ‘go-to’ place for the hackers to launder the stolen cryptocurrency.