Cryptocurrency">Cryptocurrency exchange Binance is reportedly shutting down its partnership with payment provider Advcash that enabled customers to transfer funds from sanctioned Russian banks to Binance. The collaboration, which first began in 2019, had allowed ruble deposits and withdrawals on the crypto exchange. However, according to a recent Wall Street Journal report, Advcash was apparently unaware that Binance was planning to terminate the partnership.
This development comes amid increased scrutiny and pressure on Binance over its lingering presence and operations in Russia following the country’s invasion of Ukraine earlier this year. Last month, Binance had announced it would fully exit the Russian market by selling its business operations there to a little-known firm called CommEx. In its announcement, Binance stated that maintaining operations in Russia was no longer compatible with its global compliance strategy and standards.
The dissolution of the Advcash ruble payment partnership represents the latest move by Binance to actively distance itself from the Russian cryptocurrency market and align with broader sanctions against Russia. Binance has faced a turbulent year overall, including regulatory action and warnings from the United States Securities and Exchange Commission over its business practices and token listings. By shutting down ruble payments, Binance can avoid further compliance risks and continue working to polish its image as it faces increased scrutiny from regulators in many jurisdictions.
The termination of the nearly 4-year old Advcash partnership also underscores how major cryptocurrency firms are attempting to balance their decentralized ethos with the geopolitical realities created by Russia’s aggression. While crypto was seen initially as a potential way for Russians to avoid sanctions, leading exchanges like Binance have calculated that full exit is the safer long-term play.
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