- Binance leaves the Russian market, and assets are sold to CommEX.
- Users get a one-year transition period, and assets are secured during the move.
Binance, the world’s leading cryptocurrency exchange, has recently announced its decision to exit the Russian market by selling its assets to a day-old exchange called CommEX.
CommEX was launched on September 26 and it has already introduced BTC/USDT and ETH/USDT trading pairs for spot trading, demonstrating its ambition to quickly establish a presence in the market.
To ensure a seamless transition for its existing Russian user base, Binance has outlined a gradual off-boarding process that will span up to one year. The exchange has reassured its users in Russia that their assets are safe and well-protected during this transition period.
Binance has entered into an agreement to sell the entirety of its Russia business to CommEX (https://t.co/JJRKCo9coA).
— Binance (@binance) September 27, 2023
To ensure a smooth process for existing Russian users, the off-boarding process will take up to one year. All assets of existing Russian users are safe and…
Binance’s Chief Compliance Officer, Noah Perlman, stated,
“Conducting business in Russia no longer aligns with Binance’s compliance strategy. We remain optimistic about the long-term growth of the Web3 industry globally and will focus our efforts on the 100+ other countries where we continue to operate.
Furthermore, Binance emphasized that it is committed to assisting its users with the migration process to CommEX. Users who have completed the Know Your Customer (KYC) verification process will have the option to transition to CommEX immediately.
Why?
It’s worth noting that Binance has taken an unusual step in this deal by completely severing its ties with Russia. Unlike similar arrangements with international companies in Russia, it will not receive ongoing revenue sharing from the sale and will not have the option to repurchase shares in CommEX.
Sources indicate that Binance has been preparing for its exit from the Russian market due to significant regulatory challenges and concerns related to compliance with Western sanctions against Russia. Notably, Russia was one of Binance’s largest markets, accounting for 6.9% of total visits to the Binance.com website at the time of this announcement.
