By Elena Fabrichnaya

MOSCOW, (Reuters) – Binance, the largest cryptocurrency exchange in the world, is keen to grow its presence in Russia and neighboring countries, where it can see opportunities for new regulations that would boost its business. A senior executive indicated this.

Russian politicians are calling for the change in the stance of Russia’s central bank. The bank has suggested that cryptocurrency trading and mining be restricted due to financial instability. Instead, they believe it should regulate businesses that could bring in higher tax revenue.

Vladimir Putin, President of Russia, has asked the central bank for a consensus to address the issue of cryptocurrency. This is something that regulators and central banks around the world have struggled with.

Binance Eastern European Director Gleb Kstarev said to Reuters that their goal is “to obtain a licence, and conduct legal business wherever the regulation allows.” He added that Russia could have an influence on Russia’s regulatory approach.

Kostarev stated that Russia where the central bank claims the annual volume for cryptocurrency transactions is about $5 billion was strategically important to Binance.

He said that the central bank’s plans to limit trading were harsh and added: “For the moment, we view this as an invitation for dialogue with regulators.”

Russia has been opposed to cryptocurrencies for many years. They could be used as money laundering tools or in financing terrorism. They were granted legal status by the government in 2020, but they are not allowed to be used for payment.

Kostarev stated that Russia’s current approach could influence how countries in the region deal with cryptocurrency.

“In Ukraine and Kazakhstan they are more loyal cryptocurrency and are taking steps toward liberalization, instead of restriction,” he stated. These steps are being taken by local regulators with an eye towards Russia.

Binance estimates that the global hashrate (which refers to computing power of bitcoin-connected computers) was down by around 20% due to political unrest in Kazakhstan and power outages in other parts of the world.

Kostarev claimed that the rate of change is currently recovering.

A Reuters investigation last week https://www.reuters.com/investigates/special-report/finance-crypto-currency-binance showed Binance withheld information about its finances and corporate structure from regulators, even as it welcomed government oversight and lauded its anti-money laundering programme.

Binance spokesmen said that the company supports “technologies, legislation that will put the crypto industry onto the path to become a secure and well-regulated industry.”

Binance was also investigated for recruiting money-laundering customers from Russia, six states and other countries.

Binance claimed it used “one the most complex approaches” in enforcing the anti-money laundering, counter-terrorism financing within the finance sector. The internal risk ratings of its employees were also adjusted to account for various variables.