The new development comes a day after CommEX officially launched on September 26, 2023.
Binance, the world’s largest cryptocurrency exchange, has exited the Russian market, selling its business operations to CommEX, a digital assets trading platform.
While Binance did not disclose the financial terms of the deal, the company assured its Russian users that all their assets are safe and will be securely protected during the transition process, which is expected to span up to a year.
Binance to Start Migrating Users to CommEX
Announcing the exit on September 27, Binance said the move aligns with its commitment to compliance. The exchange disclosed that operating in Russia no longer aligns with its long-term objectives.
“As we look toward the future, we recognize that operating in Russia is not compatible with Binance’s compliance strategy. We remain confident in the long-term growth of the Web3 industry around the world and will focus our energy on the 100+ other countries in which we operate,” said Noah Perlman, Binance’s chief compliance officer.
To facilitate a smooth transition for its users, Binance will work closely with CommEX to guide users on how to migrate their assets to the newly established exchange.
According to the announcement, some Russian users with completed Know Your Customer (KYC) checks will be redirected to CommEX immediately, with the rest following gradually over the coming months. Binance is committed to ensuring a seamless user experience during this transition period.
Binance Bids Farewell to Russia
Binance said in the announcement that, unlike certain international companies that have maintained revenue-sharing arrangements on similar deals, the exchange has opted for a complete exit from Russia, with no ongoing financial ties to CommEX and no option to repurchase shares in the business.
The new development comes a day after CommEX officially launched on September 26, 2023. The exchange aims to provide a range of crypto trading services, including spot, futures, and peer-to-peer (P2P) trading. Initially catering to Russian users, the platform currently offers its interface in Russian and English.
Binance Terminates Certain Services From Russian Users
Binance has been in the process of winding down its Russian operations for some time due to regulatory pressures and compliance challenges, including Western sanctions against Russia.
In August 2023, the company took measures to restrict Russian users from trading in currencies other than the country’s ruble. The exchange also said at the time that it severed ties with five sanctioned Russian banks listed on its peer-to-peer (P2P) service, which facilitated ruble transfers.
The move comes shortly after reports of a United States Justice Department investigation into the company’s potential violation of financial sanctions on Russia, despite its public commitment to compliance.
Two of the company’s senior executives left the exchange earlier this month. Gleb Kostarev, head of Eastern Europe and Russia, and Vladimir Smerkis, general manager for Russia and Commonwealth Independent States (CIS), stepped down from their positions without citing any tangible reasons.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.