Binance Departed from Russia: The Sale to CommEX

Russia Binance sells to CommEX, exiting the market due to compliance strategy misalignment. Assets of Russian users will be protected during the transition.

Sep 27, 2023 - 11:18
Oct 19, 2023 - 14:01
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Binance Departed from Russia: The Sale to CommEX
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On September 27, Binance revealed its intention to sell its entire Russian business to CommEX, a newly launched crypto exchange. While the financial specifics of the deal remain undisclosed, the implications are clear: Binance is making a full departure from the Russian market.

Binance's Chief Compliance Officer, Noah Perlman, provided insight into the decision, highlighting that operating in Russia was no longer in alignment with Binance's compliance strategy. Despite the challenges in Russia, Binance remains bullish about the Web3 industry's long-term growth prospects and will redirect its focus to the 100+ other countries where it operates.

To ensure a seamless transition for its existing Russian user base, Binance has outlined a systematic off-boarding process, which is expected to span up to a year. During this period, all assets of Russian users will remain safe and protected. Users will receive guidance on migrating their assets to CommEX. New users who have completed the Know Your Customer (KYC) process will be redirected to CommEX over time. Binance will progressively wind down its platform in Russia, ensuring minimal disruption for its users.

“Unlike similar deals from international companies in Russia, Binance will have no ongoing revenue split from the sale, nor does it maintain any option to buy back shares in the business.”

The news comes just a day after CommEX announced its launch on Sept. 26. CommEX is an exchange platform that offers a range of cryptocurrency trading services, including spot, futures, and peer-to-peer trading. Notably, it appears that CommEX's initial focus is on catering to the Russian user base, as its interface is currently accessible in both Russian and English, reflecting its commitment to serving this demographic.

Binance's decision to exit Russia is not an isolated event. Over the past year, the exchange faced significant regulatory challenges, particularly concerning compliance with Western sanctions against Russia. Despite these limitations, Binance continued promoting its services to Russian users until August 2023. However, the situation got worse and eventually led to key Russian executives departing from the firm in early September.

Russia has been a significant market for Binance. Data suggests that Russia accounted for 6.9% of total visits to Binance.com. 

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.