Binance Exits Russian Market, Sold to CommEX

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by Nik Asti

Published: September 27, 2023 at 4:32 am Updated: September 27, 2023 at 5:03 am

by Victor Dey

Edited and fact-checked:

In Brief

Binance has decided to exit the Russian market, with an agreement to sell the entirety of its Russia business to CommEX.

According to Binance – Russia is not compatible with the company’s compliance strategy.

In a significant move, Binance has agreed to sell its entire Russian operations to CommEX. The company’s decision to sell its Russian business comes as Binance aims to align its operational strategies with its compliance policies.

In a blog post — Noah Perlman, Chief Compliance Officer of Binance, acknowledged the future challenges of operating in Russia, explaining the company’s huddles to compliance.

“As we look toward the future, we recognise that operating in Russia is not compatible with Binance’s compliance strategy,” said Perlman. “We remain confident in the long-term growth of the Web3 industry around the world and will focus our energy on the 100+ other countries in which we operate.”

Transition Period to Ensure Smooth User Experience

The transition for existing Russian users is expected to unfold over the course of a year. This period will see Binance and CommEX working in tandem to guide users in migrating their assets safely to CommEX.

Binance assured all Russian users that their assets will remain secure during this period of change. The company will also phase out all its exchange services and business operations in Russia in the coming months.

A portion of Russian KYC’d new user registration will immediately be redirected to CommEX and will scale up over time. Over the next several months, Binance will sunset all exchange services and business lines in Russia.

explained Binance’s blog Post.

Binance Shifts Focus to Other Markets

Binance is resolute in its global outreach, continuing its services in over 100 other countries. With the sale to CommEX, Binance’s departure from Russia is absolute.

The company revealed no financial details of the deal, emphasizing that there will be no ongoing revenue split or any options to repurchase shares in the business post-sale. This approach starkly differentiates Binance’s exit strategy from other international companies departing from Russia, underscoring a complete severance of ties.

The maneuver by Binance highlights the increasing importance of adherence to compliance in the cryptocurrency industry. It reinforces the need for firms to ensure robust compliance strategies, particularly in regions where operating conditions may pose significant challenges.

The unfolding CommEX deal reflects a strategic adjustment that other firms in the industry may also consider as the global regulatory landscape continues to evolve.

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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master’s degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Nik Asti