Binance, the prominent cryptocurrency exchange, has officially announced its complete withdrawal from the Russian market by selling its operations to a newly established crypto exchange known as CommEX.
In a statement to Cointelegraph on September 27, Binance disclosed its agreement to transfer its entire Russian business to CommEX, though the financial specifics of the deal were not disclosed.
To ensure a seamless transition for existing Russian users, the off-boarding process is expected to span a year, with Binance assuring that all assets of its Russian user base remain safe and secure.
Noah Perlman, Binance’s Chief Compliance Officer, acknowledged that Russia was no longer compatible with Binance’s compliance strategy, expressing confidence in the continued growth of the global Web3 industry.
Binance has vowed to collaborate with CommEX to facilitate the migration of user assets, offering guidance on how to transfer them to the new exchange.
Russian users who have completed Know Your Customer checks will be the first to transition to CommEX, while Binance will gradually phase out its platform in Russia over the coming months, prioritizing a smooth user experience throughout the transition.
Furthermore, Binance CEO Changpeng Zhao assured Binance Coin (BNB) holders that they will retain their 25% trading discount on CommEX.
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In a notable departure from standard business practices, Binance clarified that it would sever all ties with Russia and not retain any ongoing revenue share or the option to repurchase shares in CommEX.
This development coincides with CommEX’s launch on September 26, as it aspires to provide a range of cryptocurrency trading services, encompassing spot, futures, and peer-to-peer trading.
Initially targeting Russian users, the platform is currently available in Russian and English only.
Binance had been contemplating its exit from the Russian market for some time, primarily due to mounting regulatory challenges associated with adhering to Western sanctions against Russia.
Despite this regulatory pressure, as of August 2023, Binance was still promoting its services to Russian users.
However, by early September, the exchange’s top Russian executives had departed.
It is worth noting that Russia was a significant market for Binance, accounting for 6.9% of total visits to the Binance.com website, according to SimilarWeb data, underscoring the significance of this strategic withdrawal from the Russian market for the exchange.
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