- Binance is reportedly seeking to cut ties with its ruble payment partner.
- The report follows the exchange’s announcement of a complete exit from Russia.
- The payment partner has been linked to a money laundering organization.
Binance‘s Russia activities are back in focus. Recent reports suggest the exchange is taking another step to distance itself from the hot potato market after it announced a complete exit with the controversial sale of its business in the region to CommEX, a newly launched and obscure exchange, amid allegations of sanctions violations.
Binance to Cut Ties with Advcash
On Wednesday, November 1, the Wall Street Journal reported that Binance intends to cut ties with Advanced Cash, also known as Advcash, citing persons familiar with the matter. According to the media outlet, the payment processing firm that has allowed Binance customers to deposit and withdraw rubles since 2019 allowed the flow of funds from sanctioned banks to the exchange.
Binance did not immediately respond to DailyCoin’s request for comment. But an Advcash spokesperson told DailyCoin the firm had not received any notice from Binance seeking to end their partnership. The spokesperson also vehemently denied the facilitation of transactions violating sanctions from the Office of Foreign Assets Control (OFAC).
"We unequivocally deny that Advcash facilitated movement of any funds between any sanctioned banks and Binance. Advcash stopped processing credit card deposits in RUB from its customers in March 2022," they asserted, adding that Advcash imposed strict KYC and AML procedures and screened users against sanctions lists.
Advcash’s Questionable Background
On paper, Advcash is a payment processor that leverages banking relationships to help firms such as Binance get access to banking services and provide fiat ramps. However, in July 2023, a Protos report drew links between Advcash and BTC-e, a defunct crypto exchange revealed to be a money laundering operation in 2017.
Advcash’s CEO Yaacov Bitton has also been linked to a Moscow-based pump and dump scheme called Native Video Box. The project listed Bitton as an adviser in 2018.
Overall, Advcash’s operations remain primarily opaque, as its license from the Belize Financial Services Commission provides barely any information.
On the Flipside
- Neither Binance nor Advcash have confirmed the WSJ report.
- Advcash’s website shows that its clients include OKX, Huobi, KuCoin, and Bybit.
Why This Matters
The recent WSJ report further highlights Binance’s Russia troubles, which risk compounding the exchange’s global regulatory woes.
Read this to learn more about the questions arising from Binance’s CommEX deal:
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