Key Takeaways:
- Binance ends operation in Russia through sale to CommEX.
- A year-long transition plan for Russian users ensures seamless migration.
- Binance’s exit was driven by a compliance strategy amid regulatory challenges.
LUCKNOW (CoinChapter.com) — Controversial crypto exchange Binance has withdrawn from Russia after selling its assets to CommEX, a recently established cryptocurrency exchange. However, it has not revealed the exact financial details of the sale, albeit ensuring a seamless transition for Russian users.
This announcement came on Sep. 27, just a day after the CommEX launch. This newly launched platform offers spot, futures, and peer-to-peer trading services.
Russian users who have completed Know Your Customer checks will be promptly redirected to CommEX. Over the coming months, Binance will gradually stop operating in Russia.
As per the announcement, “All assets of existing Russian users are safe and securely protected.”
“Every effort will be made to maintain a smooth user experience during this transition,” the announcement reads.
Binance Offers Reason Behind Leaving Russia
Regarding the reasons behind the exit, Noah Perlman, Chief Compliance Officer at Binance, stated, “As we look toward the future, we recognize that operating in Russia is incompatible 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,” he added.
Binance CEO Changpeng Zhao announced that BNB holders will “continue to enjoy” a 25% trading discount on CommEX.
The announcement made it clear that Binance would completely withdraw itself from Russia and have nothing to do with the exchange.
According to the announcement, “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.”
Binance has been planning to withdraw because of the imposed regulatory challenges. Even though Binance continued to promote its services to Russian users as of August 2023. The plan to exit Russia led the top executives to leave the company in early September.
Data from SimilarWeb indicates that Russia is one of the largest markets for Binance regarding user visits. When writing, 6.9% of all visits to Binance.com came from Russia.
