Cryptocurrency exchange Binance has announced its complete exit from the Russian market by selling its business to a newly launched crypto exchange called CommEX. Binance disclosed the agreement to sell its Russia business to CommEX on September 27, without revealing the financial terms of the deal. The off-boarding process for existing Russian users is expected to take up to one year to ensure a smooth transition. Binance assured its users that all assets of existing Russian users are safe and securely protected.
The decision to exit Russia reflects Binance’s compliance strategy, as the company realizes that operating in Russia is not compatible with its long-term goals. Binance’s chief compliance officer, Noah Perlman, expressed confidence in the growth of the Web3 industry globally and indicated that the company will focus on the over 100 other countries where it operates.
To facilitate the migration process for its customers, Binance will work together with CommEX to guide users on how to transfer their assets to the newly created exchange. Russian users who have completed the necessary Know Your Customer checks will be able to immediately redirect their accounts to CommEX. Binance plans to gradually phase out its platform in Russia within the next few months, with the aim of maintaining a seamless user experience throughout the transition.
In a tweet, Binance CEO Changpeng Zhao, also known as CZ, assured users that all their funds are safe and highlighted that BNB holders will continue to benefit from a 25% trading fee discount on CommEX.
Unlike other international companies that have established ongoing revenue-sharing agreements when exiting the Russian market, Binance clarified that it will not receive any revenue splits or maintain an option to repurchase shares in CommEX. This solidifies the fact that Binance will have no further involvement or ties with the exchange.
The announcement of Binance’s exit from Russia comes shortly after CommEX unveiled its launch on September 26. CommEX aims to provide a variety of cryptocurrency trading services, including spot, futures, and peer-to-peer trading. Initially, the platform is primarily targeting Russian users as its interface is currently available only in Russian and English.
Binance’s decision to exit the Russian market follows the exchange’s struggle to comply with Western sanctions against Russia. Despite regulatory pressures, Binance continued to promote its services to Russian users until August 2023. However, the departure of top Russian executives from the company in early September indicated its increasing difficulties. Notably, Russia represents one of the largest markets for Binance, as indicated by the significant number of user visits to Binance.com from the country.
In conclusion, Binance’s full exit from Russia signifies the company’s commitment to its compliance strategy and future expansion plans. The sale of its Russia business to CommEX ensures a smooth transition for users, with their assets being safeguarded throughout the migration process. While Binance bids farewell to Russia, it will maintain its focus on promoting the growth of the Web3 industry in other countries where it operates.