Binance, one of the leading cryptocurrency exchanges, has announced its plan to terminate its partnership with the payment provider Advcash. This decision will put an end to ruble-based transactions, as reported by the Wall Street Journal. This move is part of Binance’s ongoing strategy to exit the Russian market.
Collaboration with Advcash
In the year 2019, Binance entered into a collaboration with Advcash, allowing its customers to conveniently deposit and withdraw rubles. This partnership aimed to facilitate transactions for Russian traders who utilize Binance’s services. Through Advcash, customers were able to transfer funds from sanctioned Russian banks to their Binance accounts. Advcash’s platform also provided links to independent exchange providers, enabling customers to move funds between their Advcash and Binance accounts.
“We had not received any updates from Binance regarding ceasing the partnership,” stated an Advcash spokesperson.
Despite the lack of communication regarding the termination of the partnership, there are clear indications of Binance’s shift in strategy concerning Russia.
Binance’s Compliance-driven Strategy
In September, Binance made an announcement that it would be selling its Russian operations to CommEX, a crypto exchange. This move was significant for Binance as it demonstrated its commitment to comply with global regulatory standards, especially considering the evolving legal landscape governing cryptocurrencies.
Noah Perlman, Chief Compliance Officer at Binance, emphasized the compliance-centric motive 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 decision clearly showcased Binance’s dedication to adhering to regulatory norms.
By terminating the ruble payment partnership with Advcash, Binance is sending a strong signal that it is prioritizing a compliance-driven business ethos. This decision marks a crucial pivot in Binance’s broader company strategy in the global market.
