Binance, the world’s largest centralized cryptocurrency exchange, has decided to terminate its partnership with Advance Cash, a Central American payment processor that facilitates ruble transactions for its users.
This move also involves halting peer-to-peer (P2P) transactions with Russian-sanctioned banks. This partnership allowed users to transfer funds from sanctioned Russian banks directly to Binance, but the exchange has decided to transition users to its local subsidiary, CommEx.
Complex Regulatory Challenges
Binance’s operational changes are occurring against the backdrop of complex regulatory challenges, particularly in Europe and the Americas. The U.S. Department of Justice is currently investigating the exchange for suspected money laundering, sanctions evasion, and potential fraud, which has prompted the exchange to distance itself from various payment processors.
Advance Cash’s Response
Belize-based Advance Cash, known for managing fiat transactions for digital asset players, has yet to be officially informed of Binance’s decision to end their partnership.
This partnership allowed users to deposit and withdraw Russian rubles. Its termination marks a significant development in the exchange’s operational strategy.
Binance France’s Extension with Paysafe
While Binance has faced setbacks with payment processors like Paysafe discontinuing support for fiat deposits and withdrawals, Binance France managed to secure an extension with Paysafe, providing a silver lining amid these challenges.
Binance has also become a target of U.S. regulatory authorities. The U.S. Securities and Exchange Commission (SEC) has filed a complaint against Binance Global, Binance.US, and their CEO, Changpeng Zhao, alleging violations of federal securities rules.
In response, Zhao seeks the dismissal of the lawsuit, challenging the regulator’s jurisdictional claims. Additionally, the U.S. Commodity Futures Trading Commission (CFTC) is involved, with the exchnage and its CEO. They are pushing back against the CFTC’s claims, particularly in relation to anti-evasion allegations.