Cryptocurrency exchange Binance has announced a full exit from Russia, selling its company to newly launched cryptocurrency exchange company CommEX.
On September 27, Binance stated in an announcement to Cointelegraph that Binance had reached an agreement to sell its entire Russian business to CommEX. The exchange did not disclose financial details of the deal.
The announcement stated that in order to ensure a smooth process for existing Russian users, the removal process will take up to a year. Binance noted: “All assets of existing Russian users are securely protected.”
“Going forward, we recognize that doing business in Russia is incompatible with Binance’s compliance strategy,” said Noah Perlman, Binance’s chief compliance officer. He added:
“We remain confident in the long-term growth of the global Web3 industry and will focus our efforts on the more than 100 other countries in which we operate.”
Binance will ensure an orderly user migration process for its customers. Binance will work with CommEX to inform users on how to migrate their assets to the newly created exchange.
The user migration process will allow some Russian users who have completed Know Your Customer checks to be immediately redirected to CommEX. Binance will gradually shut down its platform in Russia in the coming months.
“We will make every effort to maintain a smooth user experience during this transition period,” Binance said in the announcement.
Binance CEO Changpeng Zhao also pointed out that holders of Binance’s native token BNB (BNB) will “continue to enjoy” CommEX’s 25% trading discount.
We will make every effort to ensure a smooth transition. All user funds are safe!
also:
Among other things, #BNB Holders will continue to enjoy a 25% discount on trading fees @CommEX_com. https://t.co/52pak53CqE
— CZ Binance (@cz_binance) September 27, 2023
The announcement emphasized that Binance will fully exit Russia and will have no ties to the exchange, stating:
“Unlike similar transactions with Russian International, Binance will not receive an ongoing revenue share from the sale and will not retain any option to repurchase shares in the business.”
The news comes one day after the launch of CommEX declare The platform was launched on September 26. The platform is designed to provide cryptocurrency trading services, including spot, futures and peer-to-peer trading. The platform appears to be primarily aimed at Russian users when it launches, as its interface is only available in Russian and English at the time of writing.
Related: Cryptocurrency Exchange Binance Reopens Trading Services in Belgium
Binance has been preparing to exit Russia for some time, as the exchange has faced significant regulatory challenges in complying with Western sanctions against Russia. But despite regulatory pressure, as of August 2023, Binance was still promoting its services to Russian users. The exchange’s Russian top brass eventually left the company in early September.
As previously reported, Russia is clearly one of Binance’s largest markets. according to According to data from SimilarWeb, Russia is the most visited market by users of the Binance.com website, accounting for 6.9% of total visits at the time of writing.
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