Cryptocurrency

Binance Accused of Sharing Customers Data With Russian Government

Published

2 years ago

April 23, 2022

In a lengthy report obtained by Investors King, one of the world’s leading business media platforms Reuters had accused Binance, the world’s largest cryptocurrency exchange platform of sharing client data, including names and addresses with the Russian government.

According to the report, a particular Russian agency known as Rosfinmonitoring or Rosfin was looking to track bitcoin donated to the now-jailed Russian opposition leader, Alexei Navalny. Therefore, approached Binance, who at the time was seeking license/approval to operate in Russia, for the details of donors to the Navalny network, the now proscribed network by the Russian government.

Explaining the reason for the move, Rosfinmonitor claimed the donations were used to finance those seeking to expose corruption inside Vladimir Putin’s government.

Quoting text messages reportedly shared by one of Binance’s officials with a business associate, Reuters said Gleb Kostarev, the head of Binance Eastern Europe and Russia, agreed to the request to share client data. He, however, claimed he didn’t have “much of a choice”.

In response to Reuters, Binance declared the report false and denied ever sharing user data, including Alexei Navalny with Russian FSB-controlled agencies and Russian regulators.

The leading cryptocurrency platform said “Prior to the war, Binance’s engagement in Russia was no different from that of any other international organization – from banks to burger restaurants.

“Like every other blockchain company with users in Russia, prior to the War with Ukraine, Binance was advocating for Russia to develop an effective crypto regulatory framework – an effort we are undertaking in every market we operate in.

“As soon as the war started, we stopped working in Russia. Instead, we implemented sanction requirements. Today, as far as we know, Binance is the ONLY crypto exchange in the world to implement the latest package of sanctions imposed by the European Union aim at Russian account holders.”

Binance further stated that it had donated over $10 million to Ukraine’s humanitarian unit since the war started, a gesture commanded by Mykhailo Fedorov, Ukraine’s Minister of Digital Transformation himself.

However, Binance said as a law-abiding organisation it has a process that allows any government or law enforcement agency to request user data from the company via legal means. Suggesting it is possible Russia had requested the data prior to the war, like the U.S and other governments.

“On the specific matter of not sharing data – today, any government or law enforcement agency in the world can request user data from Binance as long as it is accompanied by the proper legal authority. In fact, we have developed a landing page specifically for this purpose which has been in place for over one year which is used by leading law enforcement agencies from around the world. Russia is no different. Fulfilling disclosure obligations to the authorities in each jurisdiction is a large part of becoming a regulated business and Binance fulfills its legal obligations.”

It should be recalled that earlier in the year, many Nigerians accused Binance of blocking their accounts without any reason. In response, Binance had claimed those accounts were ordered closed by the FBI. Meaning, the leading cryptocurrency platform is not decentralised but a very centralised organisation that works in tandem with conventional policies.

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Cryptocurrency

SEC Director General Lauds KuCoin’s Action, Urges Compliance with National Guidelines

Published

2 days ago

May 17, 2024

Samed Olukoya

The Securities and Exchange Commission (SEC) Director General, Dr. Emomotimi Agama, has commended KuCoin, a prominent cryptocurrency exchange platform, for its proactive measures to delist the Nigerian naira (NGN) from its trading options.

This move aligns with recent directives aimed at safeguarding the nation’s economic interests and combating illicit financial activities.

In an official statement released by the SEC on Thursday, Dr. Agama expressed satisfaction with KuCoin’s decision to suspend peer-to-peer (P2P) transactions involving the Nigerian currency.

This decision comes as part of KuCoin’s ongoing efforts to adjust its platform to comply with regulatory directives issued by the Office of the National Security Adviser and the SEC.

The SEC’s stance underscores a broader initiative by Nigerian authorities to address concerns related to foreign exchange manipulation and safeguard the integrity of the nation’s financial system.

Dr. Agama emphasized the importance of adherence to established guidelines, emphasizing that regulatory compliance is essential for maintaining national security and economic stability.

The delisting of the naira by KuCoin follows similar actions taken by other cryptocurrency exchanges, including Binance, in response to regulatory scrutiny from Nigerian authorities. These measures signal a concerted effort within the crypto industry to cooperate with regulatory agencies and promote responsible trading practices.

Peer-to-peer cryptocurrency trading platforms have come under increased scrutiny due to their potential for facilitating illicit financial activities, including money laundering and fraud. By delisting the naira and suspending related trading activities, KuCoin demonstrates its commitment to upholding regulatory standards and fostering a secure trading environment for users.

Dr. Agama reiterated the SEC’s commitment to collaborating with stakeholders, including the Economic and Financial Crimes Commission (EFCC), to address challenges within the cryptocurrency space and combat financial crimes effectively.

He emphasized the importance of regulatory cooperation in tackling illicit trading practices and maintaining investor confidence in the market.

Furthermore, Dr. Agama highlighted the SEC’s ongoing efforts to implement the Revised Capital Market Master Plan, aimed at enhancing the resilience and competitiveness of Nigeria’s capital market.

He highlighted the potential of the capital market to drive economic growth and attract foreign investment, emphasizing the need for regulatory measures to protect investors and promote market integrity.

In response to Dr. Agama’s comments, the EFCC Chairman, Ola Olukoyede, reaffirmed the Commission’s commitment to combatting financial crimes and emphasized the importance of regulatory collaboration in addressing emerging challenges.

He commended the SEC’s efforts to enforce regulatory compliance within the cryptocurrency sector and pledged the EFCC’s support in safeguarding Nigeria’s financial interests.

Cryptocurrency

KuCoin Announces Temporary Pause on NGN Services to Prioritize Compliance

Published

4 days ago

May 15, 2024

Samed Olukoya

KuCoin, one of the leading cryptocurrency exchanges globally, has announced a temporary pause on its P2P Nigerian Naira (NGN) services and Fast Buy service via Naira cards.

This move, set to commence from 2024-05-15 08:00 (UTC), aims to prioritize compliance measures within the platform.

In a message addressed to its valued users, KuCoin expressed its dedication to providing a robust and secure trading environment.

The temporary suspension of NGN services is part of the exchange’s commitment to accelerating the compliance process.

During this period, ongoing orders will be completed normally, and all other services on the platform will remain available.

KuCoin assured its users that their assets are safe and secure on the exchange. While acknowledging that adjustments might be required in trading preferences, KuCoin explained that this decision is a step toward enhancing the overall trading experience for its users.

The exchange reiterated its focus on compliance and creating a secure environment for all users. KuCoin aims to resolve the compliance-related matters swiftly and efficiently to ensure a seamless transition back to full functionality of NGN services.

The decision to temporarily suspend NGN services underscores KuCoin’s proactive approach to regulatory compliance, reflecting its commitment to maintaining transparency and trust within the cryptocurrency ecosystem.

KuCoin expressed gratitude for the understanding and cooperation of its users during this period of change.

Cryptocurrency

Crypto Exchange Giant Coinbase Grinds to a Halt in System Meltdown

Published

5 days ago

May 14, 2024

Samed Olukoya

One of the world’s largest cryptocurrency exchanges, Coinbase, has been plunged into chaos as it experienced a catastrophic system-wide outage, leaving traders and investors stranded and unable to access their accounts.

The disruption, which commenced at 4:15 am UTC on May 14, has rendered both the desktop and mobile platforms of Coinbase completely unusable.

Users attempting to access the exchange are greeted with a frustrating “503 Service Temporarily Unavailable” error message, indicative of the severity of the situation.

Coinbase, known for its reliability and user-friendly interface, has been a cornerstone of the cryptocurrency market for years.

However, this unprecedented outage has shaken the confidence of countless traders who rely on the platform for their daily transactions and investments.

Coinbase swiftly notified its user base of the issue through its official status page, acknowledging the severity of the problem and assuring customers that their funds remain secure.

The exchange’s support team took to social media to disseminate updates, pledging to investigate the issue and work tirelessly to find a resolution.

This isn’t the first time Coinbase has faced technical difficulties during periods of heightened market activity.

Just months prior, on February 28, the exchange experienced temporary outages alongside several other platforms amidst a frenzy of trading activity during a Bitcoin flash crash. Such incidents highlight the strain that surges in traffic can place on even the most robust of systems.

While outages like these are undeniably frustrating for users, they often spark speculation within the crypto community.

Some enthusiasts view these disruptions as a bullish sign, interpreting the influx of traffic and subsequent downtime as indicators of growing interest and adoption in the cryptocurrency space.