Binance cryptocurrency exchange, one of the largest in the world, has decided to cease its operations in Russia. The decision to sell the entire Russian business to CommEX was driven by concerns related to compliance with regulations.
The well-known cryptocurrency exchange Binance announced its decision to withdraw from the Russian market. The reason? Issues related to compliance with regulations. This decision came after Binance felt that operating in the Russian market was not in line with their compliance strategy. Noah Perlman, the Chief Compliance Officer at Binance, emphasized these concerns in an official press statement.
CommEX, the company that took over the Russian branch of Binance, is a relatively new cryptocurrency exchange. It officially started operations just a few days before the acquisition announcement. Nonetheless, earlier reports indicate that CommEX introduced BTC/USDT and ETH/USDT trading pairs for spot trading back in July. CommEX welcomes new users from Russia and around the world on its account on the X platform.
Earlier this year, there were reports that Binance was under investigation by the US Department of Justice. The issue was whether Russian clients could use the exchange in violation of US sanctions imposed due to Russian aggression in Ukraine. In August, Binance announced that it was severing ties with sanctioned Russian banks.
Binance emphasized that it would completely withdraw from Russia after the sale. “Binance will cease all exchange services and business lines in Russia in the coming months,” it was announced.
Unlike other international companies operating in Russia, Binance will not have any further revenue from this sale and does not retain the option to repurchase shares in the future. CommEX, on the other hand, decided that it will not accept clients from the USA, EU, or other jurisdictions.
The withdrawal process for existing Russian users will take up to a year, but it’s worth noting that all their assets are “safe and protected,” as the company assures.
In the world of cryptocurrencies, where changes occur at a lightning-fast pace, such strategic moves by exchanges are significant for investors and users. Binance’s withdrawal from Russia is another example of how important it is to comply with regulations and adapt to global regulatory trends.
