On June 12, 2024, the United States introduced a new package of tough economic sanctions against Russia. Even American IT giants and international banks that worked with Russians were subject to restrictions. In response, the Moscow Exchange completely stopped trading in the dollar and euro, which instantly caused a wave of panic in the market.
Anxiety also rang through binary options traders. This is not the first time that this market has faced severe challenges in the form of tightening regulatory restrictions, as well as sanctions that have hit Russia. Are there any problems expected with the withdrawal of dollar deposits due to sanctions? What will happen to trading on ruble currency pairs? Will sanctions affect the sustainability of brokers? Let's figure it out.
Content:
- Sanctions whirlwinds: dollar and euro banned in Russia;
- What will happen to deposits in dollars and euros from regulated brokers?
- The evolution of binary options under the yoke of restrictions;
- The impact of sanctions on binary options traders;
- How did ruble pairs on binary options platforms react to the sanctions strike?
- Conclusion
Sanctions whirlwinds: dollar and euro banned in Russia
The morning of June 13 was not a pleasant one for Russian investors. Since its opening, the Moscow Exchange index has dropped in price by 3.8%. Trading participants rushed to sell off shares en masse, acting on information from the Moscow Exchange press release that trading in currency pairs with the US dollar and euro would be stopped from June 13, 2024, which caused a significant surge in volatility in the market.
Investors rushed to sell off shares en masse, acting on information from the Moscow Exchange press release that trading in currency pairs with the US dollar and euro would be stopped from June 13, 2024.
The market's violent reaction was caused by the official statement of the US Treasury on the expansion of the sanctions list against Russia. This time, not only leading state-owned companies came under attack, but also the main intermediaries of exchange operations: the Moscow Exchange, the National Settlement Depository (NSD) and the National Clearing Center (NCC).
What will happen to deposits in dollars and euros from regulated brokers?
Regulated and traditionally considered more reliable markets and brokers this time found themselves under the direct blow of sanctions, bringing a lot of trouble to their private clients. The president of the Finam broker, Vladislav Kochetkov, commented on this situation on the RBC-TV channel as follows: “Those who held dollars and euros on the stock exchange will receive money in rubles from the NCC at Tuesday’s closing rate.”
Considering that at the time of Kochetkov’s statement, many exchangers offered to buy a dollar for 200 rubles, and demand was generated not so much by supply as by crowded queues, the decision was extremely disliked by traders who rely on the protection of government regulators.
It must be said that this is not the first time for the regulated Russian stock market that private investors have been put under the knife in the first place. Small deposits could not withstand the pressure of artificial volatility during the 2018 Christmas holidays and went bankrupt due to creative decisions of the Moscow Exchange related to trading oil futures in conditions of negative prices in 2020. Many “reliable” regulated brokers, under pressure from sanctions, delayed the withdrawal of funds and manipulated rates and limits. Finam, BCS, Alfa Investments - all of them have already suspended the withdrawal of deposits of their clients due to sanctions pressure on the National Clearing Center in 2023.
These are just a few examples. The problem with withdrawing deposits in US dollars from Russia remains complex and uncertain for everyone except... clients of brokerage companies providing services in the field of binary options trading. Why is that?
The evolution of binary options under the yoke of restrictions
History shows that any sanctions and restrictions stimulate the development of new technologies and tools for trade.
For example, in 2015, the US Securities and Exchange Commission (SEC) introduced a series of rules that effectively banned Americans from using binary options platforms under the pretext that retail investors did not understand all the risks. US residents were prohibited from opening new accounts, and existing customers were given a limited time to withdraw funds.
The ban on US platforms has had a significant impact on the industry, forcing many brokers to seek new markets or go out of business entirely.
However, for a number of platforms the ban turned out to be a driver for development. Someone like the American Nadex tried to comply with all SEC requirements and remained to survive in the harsh climate of North American legislation. Others, like IQ Option, learned to adapt, moved binary options trading to other more loyal jurisdictions, and at the same time upgraded their trading platforms, no longer limiting their imagination and the wishes of clients by regulatory requirements. 
Quotex and Pocket Option went through exactly the same lessons, finding themselves under pressure from Roskomnadzor.
Legislative changes in the field of binary options have long been commonplace.
On the one hand, the ban on binary options in a number of countries has led to negative consequences. Some traders switched to less regulated platforms with greater risks, and due to the influx of new clients, a number of brokers worsened trading conditions: they reduced the percentage of payouts on transactions and reduced loyalty programs.
On the other hand, tightening regulation of the binary options market has indeed contributed to positive changes. Oddly enough, but the restrictions that pour out of a cornucopia on binary options brokers stimulated the development of this market, gradually leading to the emergence of new formats and tools, providing the necessary flexibility in such a changing legislative field. It is this acquired flexibility that makes binary options traders, looking at the problems of the Moscow Exchange and reputable brokerage firms, if not laugh at the latter, then at least smile condescendingly.
The impact of sanctions on binary options traders
What will happen to the withdrawal of dollar deposits?
The US Treasury sanctions did not affect the performance of binary options brokers, again highlighting their advantages over highly toxic, regulated “real exchange” brokers.
For clients of brokers Pocket Option , Quotex , Deriv or Binarium , depositing and withdrawing funds in US dollars and euros still works fine. There are no restrictions on earnings in “hard currency” and are not expected, which cannot be said about the Russian stock market, whose participants have been proud of the licenses of the Central Bank of the Russian Federation for so long.
At what rate will the conversion of dollars into rubles take place when withdrawing to a card?
June 12, 2024 was a significant day for the Russian foreign exchange market. The Moscow Exchange has stopped calculating and publishing the exchange rate of the US dollar to the Russian ruble for the USD/RUB currency pair .
This decision was a forced measure in response to US sanctions against the National Clearing Center (NCC). NCC played a key role in determining the exchange rate, and its disconnection from the settlement system made it impossible for a fair market determination of the value of the ruble in relation to the American currency.
Now the USD/RUB rate will be set by the Central Bank of the Russian Federation twice a day based on data on transactions on the over-the-counter market. This system is reminiscent of the model that existed in the Soviet Union, when the exchange rate of the ruble to foreign currencies was determined by a government agency.
To withdraw dollar deposits from binary options broker accounts to bank cards, the exchange rate of the Russian payment centers on the date of withdrawal will be used.
A day after trading in the dollar and euro was stopped on the Moscow Exchange, the ruble exchange rate in the MIR system rose by 0.23%, and on Binance USDT was exchanged for rubles with an almost 4% markup, but the situation quickly stabilized.
Of course, it is now difficult to predict the rate for withdrawing funds in US dollars to a bank card: everything will depend on the rate of the Central Bank of the Russian Federation on a specific date.
How did ruble pairs on binary options platforms react to the sanctions strike?
It should be noted that ruble pairs such as USD/RUB and EUR/RUB practically did not react in any way to the events on the Moscow Exchange. Both currency pairs are traded as usual, and traders of binary options brokers Pocket Option, Quotex, Binarium, Deriv and others continue to easily make money on them.
There is only one nuance: the rate in the USD/RUB pair has reached 127 rubles per dollar. Obviously, this is how binary options brokers assess the immediate prospects of this currency, but that’s a completely different story.
Conclusion
The sanctions that have hit Russia are undoubtedly changing the financial landscape of this country. And while regulated markets are shaking under the blows of unforeseen restrictions, binary options demonstrate stability, ensured by the flexibility developed over years of persecution. Unlike “traditional” markets, where forced currency conversion is possible, binary options brokers do not carry out such operations, allowing traders to independently manage their own assets at any convenient time.
The ruble pairs USD/RUB and EUR/RUB continue to trade calmly and have hardly responded to American sanctions, which demonstrates the resilience of the binary options market to external influences. Who would have thought, but in conditions of geopolitical instability they have become a “safe haven” for traders seeking to preserve and increase their capital.
Of course, you should still not trust any binary options broker. To choose a reliable broker, use our rating of the best binary options brokers . And for those who have doubted for a long time, but have only now decided that it’s time to get to know the world of cryptocurrencies better, we recommend our complete guide to cryptocurrencies for beginners .
See also:
Real stories of making money on binary options
How to access the Pocket Option website from Russia. Why is the domain blocked?
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