Binance cuts ties with Advcash soon after selling its Russian operations to the crypto exchange CommEX.
Binance is set to terminate its collaboration with payment provider Advcash, thereby discontinuing ruble-based transactions. This strategic decision aligns with Binance’s ongoing efforts to withdraw from the Russian market.
Binance reportedly sent an email to one of its clients, notifying them of the decision to terminate its partnership with payment processor Advanced Cash (Advcash). The Wall Street Journal cited insiders familiar with the situation.
Advcash is a Belize-based company that manages fiat transactions for digital asset platforms. Binance had been working with Advcash since 2019, enabling Binance users to deposit and withdraw rubles and simplifying transactions for Russian traders on its platform. However, Advcash had reportedly not received any recent updates from Binance.
By utilizing Advcash, users had the capability to transfer funds from Russian banks affected by sanctions to Binance. Advcash’s website featured links to “independent exchange providers” who could facilitate the transfer of funds from customers’ accounts at Russian banks to the Binance platform. This further allowed users to seamlessly move funds between their Advcash and Binance accounts.
Binance’s Exit from Russia
In September, Binance made the significant announcement of selling its Russian operations to the crypto exchange CommEX. This move underscored Binance’s commitment to aligning with global regulatory standards, particularly in the midst of the evolving legal landscape surrounding cryptocurrencies.
Noah Perlman, Binance’s Chief Compliance Officer, also stressed the compliance-oriented motivation behind this strategic shift. On September 27, Perlman stated:
“As we look toward the future, we recognize that operating in Russia is not compatible with Binance’s compliance strategy.”
This operational reconfiguration highlights Binance’s dedication to adhering to regulatory requirements. By discontinuing its ruble payment partnership with Advcash, Binance is demonstrating its commitment to a compliance-focused business philosophy, a pivotal step in its broader corporate strategy on the world stage.
The Securities and Exchange Commission (SEC) filed a lawsuit against Binance Global, Binance.US, and CEO Changpeng Zhao, alleging violations of federal securities regulations. In response, Zhao and Binance have also requested the courts to dismiss the lawsuit, contending that the regulator exceeded its legal jurisdiction.
Additionally, certain cryptocurrency companies and protocols have imposed geographic restrictions on Russian users in compliance with sanctions from the Treasury Department’s Offices of Foreign Asset Control (OFAC). Wallet Connect referenced OFAC’s directives in an update regarding Russia and the implementation of temporary restrictions for Ukraine.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Source: https://www.coinspeaker.com/binance-partnership-russian-ruble-advcash/