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As the Binance Card represents a crypto payment tool by design, the product’s functioning in Russia also raises a number of questions.
World’s biggest Bitcoin and altcoin crypto exchange by volume Binance decided not to give up its plans of launching the Binance Card in Russia in spite of the imminent ban on crypto payments in this country.
Binance is speeding up the arise of its crypto debit card in Russia according to a senior executive Gleb Kostarev. Kostarev, who is a Binance’s head of operations for Russia and the CIS, says that the plan to introduce Binance Card in Russia comes together with Binance’s mission to enable all of its users to have the “same experience that is fully compliant with local regulations.”
Still, Binance is not quite ready to both, announce the longly-awaited launch date and to give some legal explanation regarding this issue, for now, Kostarev said adding:
“We strive to provide all Binance users with the same experience that is fully compliant with local regulations. Russia for us is an important market. We are working on the launch of the Binance card in Russia, but so far we cannot designate the exact date launch or give any legal opinion on this issue at the moment.”
Broadcasted back in April 2020, Binance Card should work as a crypto debit card designed to make possible the payments in cryptocurrencies as is Bitcoin (BTC) for example.
According to the official announcement:
“With the Binance Card, you can keep HODLing, and spend only what you need to make a payment.”
Binance Plans to Introduce Its Card Not Only in Russia but in the U.S. as Well
Foreseen to be accepted in over 200 regions around the world, Binance Card officially pioneered in countries of the European Economic Area in July 2020. The new product should supposedly soon become available in the United States as well.
As the Binance Card represents a crypto payment tool by design, the product’s rise in Russia also raises a few questions. Back in July 2020, Russian President Vladimir Putin signed the country’s first crypto-related law, which forbids Russian residents from making payments in cryptocurrencies like Bitcoin starting from January 2021.
Just for a reminder, Putin signed the bill that regulates digital financial asset (DFA) transactions and it was approved by the State Duma, the lower house of the Russian parliament, on July 22 and by the Federation Council on July 24. This exact law gives a definition to the digital currency, stating that it “is recognized as an aggregate of electronic data capable of being accepted as the payment means, not being the monetary unit of the Russian Federation or a foreign state, and as investments.”
“The digital currency cannot be used at the same time to pay for any goods and services.”
However, this law seems to have no effect on Binance’s business, according to Kostarev.
“The adopted version of the law did not affect Binance’s business in any way. The law “On Digital Financial Assets,” is fairly neutral and does not prohibit the crypto assets turnover.”
Kostarev also went on saying that the adopted version of the law “does not fully cover all aspects of cryptocurrency regulation.” Still, Binance is still carrying further threats to the industry as Russian lawmakers are intending to announce another crypto-related bill and can alter passed legislation, Kostarev added.
After passing the law “On Digital Financial Assets,” in July 2020, Russia is getting ready to pass another law, “On Digital Currency,” by late 2020. On September 3, the Russian Ministry of Finance suggested a set of amendments that would embargo all crypto transactions except through inheritance, bankruptcy and enforcement proceedings.