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.