Binance Stops Ruble Payment Amid Regulatory Challenges
A recent news report revealed that the prominent crypto exchange, Binance, is set to stop offering Ruble payment as it severed its business relationship with Advanced Cash (Advcash), which enabled customers to transfer and receive funds from Russian banks sanctioned by the UN.
According to reports, the Binance exchange continues to take significant steps and decisions as it aims to stop its operations in the Russian market due to regulatory complications. Previously, the exchange reportedly sold its operation branch in Russia to another prominent business in the region, CommEx. And recently, Binance has stopped offering Ruble payment to its Russian customers.
Despite the multiple regulatory challenges the exchange face, especially from the United States regulators, it aim to continue its business operations in other regions with less invasive and stringent financial policies while determined to be 100% competitive with the global compliance scheme.
Binance Ends Collaboration With Advcash
Wall Street Journal reportedly published on Saturday that Binance exchange is stopping its Ruble payment alliance. Consequently, the decision by Binance to end the alliance would severely affect its customers, who depend on sanctioned banks in Russia to transfer their rubles.
In addition, the report revealed that the partnership between Russian banks and Binance started way back in 2019 when the exchange signed a partnership deal with Advanced Cash. Furthermore, the relationship enables its customers to withdraw and deposit funds in Russian fiat currency, rubles.
However, while commenting on the new development by Binance, the spokesperson for Advcash claimed that the decision by the exchange was sudden and caught the firm unaware as Binance did not officially inform them of its decision to end their joint venture. Nonetheless, the report showed that Binance’s action to cut the ties between them was not totally a surprise as the crypto firm had been struggling to scale through many regulatory compliance issues in different regions where it operates.
Binance To Exit Russian Crypto Market
Recently, Binance staged a legal fightback against the United States Securities and Exchange Commission (SEC) after the latter accused it of executing illegal operations and aiding terrorism funding.
Hence, it was expected that Binance would begin to extricate itself from some country’s markets to lessen the load of compliance issues, and the latest development was a part of the plan. Furthermore, about a month ago, the exchange publicly announced its plans to evacuate the Russian market completely. To facilitate the decision, Binance sold its regional branch to CommEX. After the sale, Binance said it embarked on the transaction to ensure its Russian customers could transit seamlessly.
In the announcement, the chief compliance officer for Binance, Noah Perlman, explained Binace’s reason for exiting the Russian market. According to him, the current business environment in Russia was impervious to the compliance approach of Binance. Furthermore, Binance emphasized its decision to focus more on the other countries it serves in order to foster its global growth.
Binance To Focus On Other Regions
In addition, the report stated that Advanced Cash Limited, which operates under the Belize Financial Commission, has yet to receive any official notification concerning the status of its collaboration with Binance exchange. According to the report, the spokesperson of Advanced Cash said the firm was not aware of Binance’s decision, and the news came as a shocker for the firm as Binance refused to meet and discuss the situation with them officially.
Meanwhile, crypto spectators suggested that the sudden movement by Binance to cut off Ruble’s payment was to facilitate the exchange’s pre-planned exit from the Russian market. In addition, the decision points out the strategic actions of Binance to distance itself from all partnerships that do not support its long-term goal and vision. Emphasizing its decision, Binance revealed that the Russian financial policy does not align with its compliance protocol.
Expantiating the stance, Noah Perlman claimed that Binance is dedicated to establishing its presence in other countries with less stringent laws. Also, the chief compliance officer related that Binance has a solid belief in the rapidly evolving Web3 industry and aims to enable customers to access its benefits through its platform.
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