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Binance terminates Ruble payment partnership amid regulatory hurdles

Binance terminates Ruble payment partnership amid regulatory hurdles

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TL;DR

  • Binance, a leading crypto exchange, is ending its Ruble payment partnership established with Advanced Cash (Advcash) in 2019, which allowed fund transfers from sanctioned Russian banks.
  • This decision follows Binance’s recent move to exit the Russian market, having sold its Russian operations to CommEx due to growing regulatory challenges.
  • While facing scrutiny in multiple jurisdictions, including the U.S., Binance emphasizes its focus on operations in other countries, aligning with its global compliance strategy.

Binance is terminating its Ruble payment partnership, according to a recent report from the Wall Street Journal. The report indicates  Binance’s decision to end the collaboration, allowing the transfer of funds from sanctioned Russian banks to its platform. 

It is important to know that Binance’s partnership with Russian banks dates back to 2019 when it entered an agreement with Advanced Cash, commonly referred to as Advcash. However, the collaboration permitted its clientele to deposit and withdraw funds in Russian rubles. The report also states that an Advcash spokesperson was uninformed about the exchange’s recent decisions concerning their joint venture.

Binance’s strategic moves amid regulatory scrutiny

Binance’s decision to sever ties with its Ruble payment partnership doesn’t come as a surprise. The crypto exchange’s operational year has been laden with regulatory challenges. Moreover, Binance has confronted legal complications in the United States, finding itself in the crosshairs of the US Securities and Exchange Commission (SEC). This recent development continues Binance’s strategy to extricate itself from certain markets. Notably, just a month ago, Binance publicized its resolve to vacate the Russian market entirely. In line with this decision, they orchestrated the sale of their Russian operations to CommEx. This transaction, as per their statement, aimed at ensuring a seamless transition for their existing Russian users. Noah Perlman, the firm’s chief compliance officer, shed light on this situation. He stated that the current operational climate in Russia was incongruent with Binance’s compliance approach. Additionally, Binance articulated its intent to intensify its focus on the nations it serves and foster industry growth therein.

Further distancing from the Russian market

Adding to the information, Advanced Cash Limited, operating under the authority of the Belize Financial Services Commission (FSC), had not received any official communication from Binance regarding the status of their partnership. This dissolution of ties with the Russian market aligns with the scrutiny Binance has faced regarding its Russian operations. About two months prior, Binance resolved to offload its entire Russian business portfolio to CommEX, marking its exit from the country. 

Binance’s decision underscores its strategic move to distance itself from existing collaborations that do not align with its long-term vision. Reiterating its stance, Binance emphasized that its Russian operations were incompatible with its overarching compliance strategy. Echoing this sentiment, Binance’s Chief Compliance Officer, Noah Perlman, asserted the firm’s dedication to other countries where they have a presence. Perlman expressed unwavering confidence in the global growth potential of the Web3 industry, emphasizing Binance’s commitment to the numerous other nations it serves.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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