CommEx: Key Information on Binance’s Successor in Russia

Cryptocurrency exchange Binance has announced its intention to completely exit Russia by transferring its local operations to a newly established exchange called CommEx. While assuring its customers of a “smooth” transition, Binance has not disclosed extensive details regarding its successor in the Russian market.

At the time of the announcement, there was limited information available about the founders or background of CommEx. The exchange was launched on Sept. 26, 2023, just one day prior to Binance revealing the sale of its business to this newly formed exchange for an undisclosed sum.

A representative from CommEx did not respond to several inquiries from users concerning the company’s ownership or executive team in the official Telegram group. The individual stated that CommEx is registered in the Seychelles and aims to operate as a global exchange with a focus on two primary regions: the Commonwealth of Independent States (CIS) and Asia.

CommEx already listed on Binance-owned CoinMarketCap

At its launch, CommEx offers only a browser version, with plans to introduce a mobile application in the near future. Despite its recent inception, CommEx is already featured on CoinMarketCap, a prominent cryptocurrency tracking platform that Binance acquired in April 2020. Conversely, rival market tracker CoinGecko does not provide any information about CommEx at this time.

As per CoinMarketCap data, CommEx lists 25 trading pairs at launch, including stablecoins such as Tether (USDT) and Binance’s BNB (BNB) cryptocurrency. The description of the new exchange on CoinMarketCap states, “CommEx is a rapidly expanding cryptocurrency exchange, backed by top-tier crypto VCs.”

Initially, CommEx will facilitate peer-to-peer (P2P) transactions in Russia, enabling users to trade their cryptocurrencies without utilizing the platform’s fiat channels. The platform is expected to commence spot trading of USDT against the Russian ruble once fiat channels are operational, according to a spokesperson in CommEx’s Telegram group.

A representative from Binance informed Cointelegraph that transitioning to CommEx would be “entirely optional” for Binance users. “You may also withdraw your funds to another platform if you’d like,” the individual noted, emphasizing that users would still have the option to migrate their assets to CommEx. The spokesperson added:

“Russia KYC’d new users registration will immediately be redirected to CommEX. Then, over the next several months, Binance will sunset all exchange services and business lines in Russia.”

According to the CommEx representative, users can trade without undergoing Know Your Customer (KYC) checks for withdrawals of up to 2 Bitcoin (BTC). The firm will prohibit account registration or services in jurisdictions including the United States, Belgium, the Republic of Cyprus, Czechia, the Netherlands, and Singapore, as well as sanctioned areas such as Iran and Crimea, as stated on CommEx’s location restrictions page.

The spokesperson also indicated that it is improbable that Binance’s contactless payment feature, Binance Pay, will remain operational with CommEx.

Users question CommEx ownership

Binance’s announcement has sparked speculation within the local cryptocurrency community regarding the ownership of its successor in Russia. Some users have noted similarities between the layouts of the Binance and CommEx websites, while others have remarked that CommEx appears to be a “full copy” of Binance’s site.

“They just changed the logo and colors but essentially it’s the same website. I wouldn’t be surprised if Russian tops who left banana [Binance] would be managing directors here,” one commenter wrote in a now-deleted message on CommEx’s Telegram group.

Among the similarities are notable resemblances between the privacy policies and other website pages, such as terms of use, of both Binance and CommEx. For instance, CommEx’s privacy notice essentially offers a rephrased version of Binance’s privacy notice, closely mirroring its structure and many phrases.

An excerpt from CommEx’s privacy notice. Source: CommExAn excerpt from Binance’s privacy notice. Source: Binance

Russia has been one of Binance’s largest markets, with the country identified as the leading market in terms of user visits to the Binance.com website, accounting for 6.9% of total visits at the time of writing, according to data from SimilarWeb.

“I don’t think that CZ [Changpeng Zhao] is ready to abandon such a huge pie like Russia and leave just like that,” one local cryptocurrency observer told Cointelegraph. Some individuals in the community have drawn comparisons between CommEx in Russia and Binance’s affiliate in the United States, Binance.US, which claims to operate “independently” of Binance.

“It looks like some sort of Binance.US but just without the word ‘Binance’ in its name,” another local crypto enthusiast remarked to Cointelegraph.

Related: Binance and CEO Changpeng Zhao ask court to dismiss SEC suit

A spokesperson for Binance declined to comment on whether the company is aware of CommEx’s founders or executives. CommEx’s spokesperson refrained from immediate comment, stating that the firm is concentrating on “platform optimization and stability,” as the CommEx website briefly experienced downtime amid a surge of Russian users following Binance’s announcement. CommEx’s Russian Telegram group, which had approximately 50 members before the announcement, now boasts nearly 2,000 users.

“With this sale, Binance fully exits Russia. We have no plans to get back,” a spokesperson for Binance informed Cointelegraph.

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