Binance Bids Goodbye with Advcash & Ruble Payments

Binance has made a move to terminate its partnership with payment provider Advcash, resulting in the discontinuation of ruble-based transactions, as part of the cryptocurrency exchange's ongoing efforts to disengage from the Russian market.

The decision to sever ties with payment processor Advanced Cash (Advcash) was communicated to a Binance client via email, according to insiders cited by The Wall Street Journal. This collaboration, initiated in 2019, had been instrumental in facilitating fund transfers between Binance and several Russian banks under international sanctions.

Belize-registered Advcash had enabled customers to deposit and withdraw Russian rubles, a capability that gained prominence when Binance expanded its fiat-to-crypto trading offerings. However, recent developments and heightened legal scrutiny have prompted Binance to reevaluate its business relationships in the Russian context.

Notably, an Advcash representative disclosed that they had not received any formal communication from Binance regarding changes to their partnership. Responding to concerns about potential sanctions violations, the representative clarified that Advcash had ceased processing credit card deposits in rubles from its customers back in March 2022. They vehemently denied any involvement in the movement of funds from sanctioned banks to Binance.

This decision to discontinue the partnership with Advcash aligns with Binance's overarching strategy to gradually withdraw from the Russian market amidst allegations that the cryptocurrency exchange might be inadvertently assisting in evading Western sanctions.

While Binance has yet to issue an official statement regarding the termination of the Advcash collaboration, internal communications, as reported, imply a concerted effort to distance the company from any activities that could be construed as circumventing sanctions.

Binance's exit strategy began to take a more concrete form in September when it agreed to divest its Russian operations to local crypto exchange CommEx. This transition process is anticipated to unfold gradually, potentially spanning the course of a year.

However, concerns have arisen over CommEx, primarily due to its similarities with Binance in terms of user interface and its relatively recent establishment. In response to these observations, Changpeng “CZ” Zhao, Binance's founder and CEO, has categorically denied any ownership of the company that acquired Binance's Russian business.

CZ acknowledged that some former members of the Binance CIS team may have joined the CommEX team, viewing this as a positive development. He also explained that the design and APIs of CommEX intentionally mirror Binance's to provide customers with a seamless and familiar user experience.

In a separate development, the US Department of Justice's national security division is investigating whether Binance or its executives violated US sanctions related to Russia's annexation of Crimea and interference in Ukraine. This inquiry is distinct from an ongoing investigation by the DOJ's criminal division concerning Binance's compliance with anti-money laundering and tax laws.

These developments come shortly after reports of Binance easing restrictions on Russian citizens and residents, overturning measures that had been in place for over a year. This decision has diverged from the stance of mainstream financial institutions and global regulators, weakening Western efforts to isolate Moscow.