Binance has fully exited the Russian market by selling its entire Russian business to CommEX, a one-day-old cryptocurrency exchange.
Binance Sells Russian Business
In a statement on Wednesday, the crypto exchange said it has agreed to sell the entirety of its Russian business to CommEX without disclosing the deal’s financial details.
Akin to deals from international companies in Russia, Binance said it will have no revenue split from selling its Russian business to CommEX nor any option to buy back shares.
Launched on September 26, CommEX is a centralized cryptocurrency exchange (CEX) that offers a wide range of products and services, including spot, futures, simple futures, and peer-to-peer (P2P) trading.
Migration Process
Binance assured Russian users that their assets were safe and would take up to one year to move them to CommEX.
According to Binance, there will be an orderly process for the migration of users. The crypto exchange added that it will collaborate with CommEX to notify users how to move their assets to the new exchange.
Binance also noted that some Russian KYC’d new user registrations 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,” Binance said.
Highlighting reasons for the latest departure, Binance Chief Compliance Officer Noah Perlman said:
“As we look toward the future, we recognise that operating in Russia is not compatible with Binance’s compliance strategy. 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.”
The latest development comes a few weeks after The Wall Street Journal (WSJ) reported that Binance was reevaluating its Russian business, including the possibility of a complete exit.
Binance’s Russian business has come under scrutiny from the US Department of Justice (DOJ). As reported by Coinfomania in May, the DOJ has been investigating Binance for potentially violating the regulator’s sanctions on Russia during its Ukraine invasion.
