Cryptocurrency exchange Binance has confirmed its exit from the Russian market by selling its Russian business to the newly launched cryptocurrency exchange, CommEX.
In a statement released on September 27, Binance revealed that it has reached an agreement to divest its entire Russian operations to CommEX. Financial details of the deal were not disclosed.
To ensure a smooth transition for its existing Russian user base, Binance anticipates that the removal process will take up to a year. The exchange assured users that all assets of its Russian customers are securely protected.
Noah Perlman, Binance's Chief Compliance Officer, explained the decision, stating, "Going forward, we recognize that doing business in Russia is incompatible with Binance’s compliance strategy." He added that Binance maintains confidence in the long-term growth of the global Web3 industry and will continue to focus efforts on the more than 100 other countries where it operates.
Binance will facilitate an organized user migration process in collaboration with CommEX, guiding users on transferring their assets to the newly established exchange. Some Russian users who have completed Know Your Customer checks may be immediately redirected to CommEX. Binance plans to gradually shut down its platform in Russia over the coming months.
CEO Changpeng Zhao emphasized that Binance Coin (BNB) holders will continue to enjoy a 25% trading discount on CommEX. The announcement stressed that Binance will completely sever ties with the Russian market, with no ongoing revenue share or the option to repurchase shares in the business.
This move comes one day after CommEX's launch on September 26, primarily targeting Russian users with services such as spot, futures, and peer-to-peer trading. At present, the platform's interface is available in Russian and English.
Binance had been preparing to exit the Russian market for some time due to difficulties in complying with Western sanctions against Russia. However, as of August 2023, Binance was still promoting its services to Russian users. The exchange's Russian executive ultimately left the company in early September.
Notably, Russia is one of Binance's largest markets, with a significant number of user visits to the Binance.com website originating from the country, accounting for 6.9% of total visits.
