Cryptocurrency exchange giant Binance has finalized its complete withdrawal from the Russian market by selling its Russian business operations to the newly established crypto exchange, CommEX.
Exit Strategy Details
The financial specifics of this deal have not been disclosed. However, Binance emphasizes that this exit from Russia means it will have no continuing revenue sharing or the option to repurchase shares in the future, making it a clean break.
Smooth Transition for Russian Users
To ensure a seamless transition for its existing Russian users, Binance has outlined an off-boarding process that will span approximately one year. The exchange has assured users that all assets of Russian customers are securely protected.
Everything will be done to ensure a smooth transition. All user funds are safe!
— CZ 🔶 Binance (@cz_binance) September 27, 2023
Also:
Among other things, #BNB holders will continue to enjoy a 25% trading fee discount on @CommEX_com. https://t.co/52pak53CqE
Compliance Strategy Shift
Binance's Chief Compliance Officer, Noah Perlman, explained the exit from Russia, stating, "We recognize that operating in Russia is not compatible with Binance’s compliance strategy." Despite this exit, Binance remains confident in the long-term growth of the Web3 industry worldwide and will focus its efforts on the 100+ other countries where it operates.
User Migration Plan
Binance will collaborate with CommEX to facilitate a straightforward process for migrating users to the new exchange. Russian users who have completed Know Your Customer (KYC) checks will be redirected to CommEX promptly, while Binance will gradually phase out its platform in Russia over the coming months. The transition aims to minimize disruptions for users.
Benefits for BNB Holders
Binance CEO Changpeng Zhao highlighted that Binance Coin (BNB) holders will still receive a 25% trading discount on CommEX, ensuring continued benefits for Binance's native token holders.
Complete Disassociation
The announcement underscores that Binance's exit from Russia is absolute. There will be no ongoing financial ties between Binance and CommEX. The exchange will not retain any option to repurchase shares or share in the new business's profits.
CommEX's Recent Launch
This news comes on the heels of CommEX's launch on September 26. The platform aims to provide a range of cryptocurrency trading services, including spot, futures, and peer-to-peer trading. While initially targeting Russian users, the platform currently offers its interface in both Russian and English.
Binance's Ongoing Challenges
Binance has been preparing its exit from the Russian market amid significant regulatory challenges related to compliance with Western sanctions against Russia. Despite regulatory pressures, Binance continued to promote its services to Russian users as of August 2023. However, in early September, the exchange experienced the departure of its top Russian executives.
Russian Market Significance
Russia holds a prominent position in Binance's user base, being the top market in terms of user visits to the website Binance.com, accounting for 6.9% of total visits at the time of writing, according to SimilarWeb data.
