Binance Exits Russia By Sale to New Exchange, CommEX
In a strategic move, Binance, one of the world’s largest cryptocurrency exchanges, has decided to withdraw from the Russian market entirely. This decision comes amid increasing regulatory pressure and compliance concerns. Binance announced its exit by selling its entire Russian business to a newly established cryptocurrency exchange named CommEX.
The sale marks the end of Binance’s presence in Russia, and the deal’s financial details have not been disclosed. However, it is notable that Binance will not have any ongoing revenue-sharing arrangement or the option to repurchase shares in CommEX following the sale.
CommEX officially launched just one day before the announcement, is poised to take over the cryptocurrency landscape in Russia. The exchange already lists 25 trading pairs, including popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), as well as stablecoins such as Tether (USDT) and Binance’s native cryptocurrency, BNB.
One key aspect of the transition process is the off-boarding of existing Russian users from Binance to CommEX, which is expected to take up to a year. During this period, the assets of Russian users are assured to be “safe and securely protected,” as stated by Binance. The exchange will also collaborate with CommEX to guide users on migrating their assets to the new platform.
CommEX immediately focuses on catering to Russian users, with its website interface in Russian and English. The exchange initially plans to support peer-to-peer (P2P) transactions in Russia, enabling users to exchange cryptocurrencies without using fiat channels. In the future, CommEX intends to launch spot trading of Tether (USDT) against the Russian ruble once fiat channels become operational.
For Binance users in Russia, the transition to CommEX will be optional. They will also have the freedom to withdraw their funds to other platforms if they choose to do so. New Russian users who complete the Know Your Customer (KYC) checks will immediately be directed to CommEX.
CommEX has already made its mark by being listed on CoinMarketCap, a prominent cryptocurrency tracking website. This development is significant, considering that CoinMarketCap is owned by Binance. CommEX’s rapid entry into this respected listing platform suggests it has the backing of top-tier crypto venture capitalists.
Despite lacking detailed information about CommEX’s founders or executives, the exchange has garnered attention within the cryptocurrency community. Some users have noticed similarities in the website layouts of Binance and CommEX, speculating that CommEX could be a “Russian version” of Binance. However, neither Binance nor CommEX has officially commented on this speculation.
Binance’s decision to exit the Russian market follows a series of exits from other countries as the exchange grapples with regulatory challenges worldwide. This move also comes after allegations that Binance was assisting nationals in transferring money abroad, leading to measures to align with international sanctions.
Binance’s choice of CommEX as its successor in Russia remains unexplained. Still, the exchange emphasised its commitment to its users’ protection and maintaining trust in its platform, making the move in line with its compliance strategy.
In conclusion, the cryptocurrency landscape in Russia is undergoing a significant transformation as Binance, a global cryptocurrency giant, hands over its Russian operations to CommEX. The rapid rise of CommEX, combined with Binance’s exit, marks a noteworthy chapter in Russia’s cryptocurrency journey.
