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Cryptocurrency exchange Binance has declared its complete withdrawal from Russia by divesting its operations to a newly established crypto exchange called CommEX.
Binance has finalized an agreement to transfer all of its Russian operations to CommEX, as stated in an announcement to Cointelegraph on Sept. 27. The exchange did not reveal the financial specifics of the transaction.
To facilitate a seamless transition for current Russian users, the off-boarding process is expected to take up to one year, according to the announcement. “All assets of existing Russian users are secure and well-protected,” Binance emphasized.
“As we look ahead, we acknowledge that conducting business in Russia is not aligned with Binance’s compliance strategy,” stated Binance chief compliance officer Noah Perlman, adding:
“We remain optimistic about the long-term expansion of the Web3 sector globally and will concentrate our efforts on the 100+ other nations where we operate.”
Binance will ensure an orderly process for its customers during the user migration. In collaboration with CommEX, Binance will guide users on how to transfer their assets to the newly established exchange.
The user migration process will enable some Russian users who have completed Know Your Customer checks to be promptly redirected to CommEX. Binance will gradually phase out its platform in Russia over the coming months.
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“Every effort will be made to ensure a smooth user experience throughout this transition,” Binance stated in the announcement.
Binance CEO Changpeng Zhao also mentioned that holders of Binance’s native token, BNB (BNB), will “continue to benefit” from a 25% trading discount on CommEX.
Everything will be done to guarantee a smooth transition. All user funds are secure!
Also:
Among other things, #BNB holders will continue to benefit from a 25% trading fee discount on @CommEX_com. https://t.co/52pak53CqE— CZ Binance (@cz_binance) September 27, 2023
The announcement highlighted that Binance will completely exit Russia and will have no connections with the exchange, stating:
“Unlike similar arrangements from international firms in Russia, Binance will not have any ongoing revenue share from the sale, nor does it retain any option to repurchase shares in the business.”
This news follows just a day after CommEX announced its launch on Sept. 26. The platform aims to offer cryptocurrency trading services, including spot, futures, and peer-to-peer trading. At launch, the platform appears to be primarily targeting Russian users, as its interface is currently available only in Russian and English.
Related: Crypto exchange Binance reopens exchange services in Belgium
Binance has been preparing for its exit from Russia for some time, as the exchange has encountered significant regulatory hurdles concerning compliance with Western sanctions against Russia. However, despite regulatory pressures, Binance was still promoting its services to Russian users as of August 2023. The exchange ultimately saw its top Russian executives depart the firm in early September.
As previously reported, Russia is reportedly one of the largest markets for Binance. Data from SimilarWeb indicates that Russia is the leading market in terms of user visits to the website Binance.com, accounting for 6.9% of total visits at the time of writing.
