Binance Faces Scrutiny in Russia as Crypto Oversight Tightens

As Russia tightens its grip on cryptocurrency, Binance has found itself in the crosshairs. The exchange has been accused of sharing customer data with Russian investigators, who requested information about Yuri Belenkiy, an IT specialist accused of using crypto donations to support Ukrainian fundraising campaigns.

Belenkiy reportedly sent over $700 in cryptocurrency between January 2023 and March 2024 to the Ukrainian military and the Azov Brigade. According to law enforcement documents reviewed by Reuters, investigators requested Belenkiy's transaction history and received his address, phone number, passport details, and identification documents.

Binance announced its full exit from Russia in September 2023, selling its local operations to CommEX. However, the scrutiny is not limited to individual cases. The Bank of Russia is bringing crypto directly into its financial risk framework under a new draft ordinance.