Cryptocurrency exchange Binance has recently announced its decision to completely withdraw from the Russian market, with plans to sell its local business to a newly established exchange called CommEx. In an effort to ensure a smooth transition for its customers, Binance has provided limited information about the successor exchange.
At present, little is known about CommEx, including its founders or background. The exchange was introduced on September 26, 2023, just a day before Binance declared the sale of its Russian business to CommEx for an undisclosed amount. Despite repeated inquiries from users in the official Telegram group, a spokesperson for CommEx did not respond regarding the company’s owners or executives. However, it was revealed that CommEx is registered in the Seychelles and intends to operate as a global exchange, primarily focusing on the Commonwealth of Independent States (CIS) and Asia.
Interestingly, despite its recent launch, CommEx has already been listed on CoinMarketCap, a prominent cryptocurrency tracking website that Binance acquired in April 2020. However, CoinGecko, a rival market tracker, currently lacks any information about CommEx.
According to CoinMarketCap data, CommEx currently offers 25 trading pairs, including popular stablecoins like Tether (USDT) and Binance’s own cryptocurrency, BNB (BNB). The exchange’s description on CoinMarketCap states that CommEx is a rapidly expanding cryptocurrency exchange with support from top-tier crypto venture capitalists.
Initially, CommEx will facilitate peer-to-peer (P2P) transactions in Russia, allowing users to trade cryptocurrencies without utilizing the platform’s fiat channels. However, once fiat channels are operational, the exchange plans to introduce spot trading of USDT against the Russian ruble.
Binance has assured its users that transitioning to CommEx is optional and they may choose to withdraw their funds to another platform if they so desire. Users will still have the ability to transfer their assets to CommEx. A spokesperson for Binance explained that new user registrations in Russia will immediately redirect to CommEx, and over the next few months, Binance will gradually phase out all exchange services and business operations in the country.
CommEx has specified that users can trade up to 2 Bitcoin (BTC) in withdrawals without having to complete Know Your Customer (KYC) checks. However, the exchange has outlined several location restrictions, preventing account registration and services in countries such as the United States, Belgium, Cyprus, Czechia, the Netherlands, Singapore, Iran, and Crimea.
There have been discussions within the local crypto community about the ownership of CommEx, sparked by the similarities between Binance and CommEx’s website layouts. Some users have even referred to CommEx as a “full copy” of Binance’s website, suggesting that individuals who were previously associated with Binance may be managing the new exchange. Notably, the privacy notices and terms of use on CommEx’s website closely resemble those of Binance.
Russia has been a crucial market for Binance, with the country ranking first in terms of user visits to Binance.com, accounting for 6.9% of total visits, according to SimilarWeb data. This has led some to question whether Binance is truly abandoning such a significant market or if CommEx is simply a localized version of Binance, similar to Binance.US operating independently.
Neither Binance nor CommEx provided any comments regarding the founders or executives of the new exchange. While CommEx experienced a temporary outage as Russian users flocked to the website following Binance’s announcement, the exchange’s Telegram group saw a significant increase in members.
Binance has confirmed that the sale of its business to CommEx marks a complete exit from the Russian market, emphasizing that there are no plans to return in the future.
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