Binance, the renowned cryptocurrency exchange, has taken a definitive step by exiting Russia. This strategic move involves the sale of its Russian operations to the recently launched crypto exchange, CommEX.
Notably, this marks a complete departure from Russia for Binance, relinquishing any ongoing revenue sharing or buyback options. However, financial specifics of the deal have not been disclosed.
A Gradual Transition for Russian Users
Binance has outlined a careful off-boarding process that will span up to one year. This is to ensure a seamless transition for its Russian user base. It is essential to note that all assets belonging to existing Russian users are safe and securely protected during this transition.
Chief Compliance Officer of Binance, Noah Perlman, explained the rationale behind this move, stating,
“As we look toward the future, we recognize that operating in Russia is not compatible with Binance’s compliance strategy.”
Binance is unwavering in its confidence in the long-term growth of the Web3 industry worldwide. Further, the company will now focus its efforts on its operations in over 100 other countries.
Smooth User Migration Process and Continued Benefits for BNB Holders
Binance is committed to providing its customers with a well-organized process to migrate to the new platform in partnership with CommEX. Russian users who have completed their Know Your Customer (KYC) checks will be seamlessly redirected to CommEX, while Binance will gradually phase out its platform in Russia over the coming months. The utmost priority is to maintain a smooth user experience throughout this transition.
Binance CEO Changpeng Zhao has assured that holders of Binance’s native token, BNB, will “continue to enjoy” a 25% trading discount on CommEX.
Complete Exit, No Strings Attached
It’s crucial to emphasize that Binance’s exit from Russia is comprehensive, with no lingering ties to the exchange. Unlike similar international deals in Russia, Binance will not have any ongoing revenue sharing from the sale. Also, it will not hold any option to repurchase shares in the business.
CommEX’s Promising Entry, Regulatory Challenges and the Road Ahead
This news coincides with the recent launch of CommEX on September 26. The platform is designed to cater to the cryptocurrency trading needs of users, offering spot, futures, and peer-to-peer trading services. Initially, CommEX appears to target the Russian market primarily. This is evident in its interface, which is currently available in Russian and English.
Binance had been preparing for its exit from Russia, as it grappled with mounting regulatory challenges tied to Western sanctions against Russia. Notably, despite the regulatory pressure, Binance was promoting its services to Russian users as of August 2023. However, the departure of its top Russian executives in early September signaled a shift in its strategy.