In the world of cryptocurrencies, where dynamics and unpredictability are the norm, the giant Binance is withdrawing from the Russian market. CommEX, the acquirer of Binance’s Russian operations, anticipates a massive migration of customers to its platform. Will all the forecasts come true?
When cryptocurrency giants like Binance make decisions, the market reacts. According to reports in the Russian media, the company CommEX, which has taken over Binance’s Russian operations, expects about a million customers to migrate to its platform.
Although it might seem that CommEX would be the natural place for former Binance users, the situation is more complex. Many observers, including Dmitrij Stepanin, CEO of Satoshkin, have noted that cryptocurrency users have mainly turned to the ByBit exchange, which has recently been actively promoting itself in the market. Exchanges like Huobi, Bitget, Kucoin, and Gand ate.io, offering features similar to Binance, also expect a significant influx of new users. These reports are also confirmed by data from the P2P Army service, which has noted increased advertising activity from other cryptocurrency exchanges.
Anton Toroptsev, CEO of CommEX, predicts that about a million users will come to his platform. Independent financial analyst, Andrey Barkhota, estimates that at least 700,000 Russians were registered on Binance. Binance, however, did not disclose the exact number of its Russian clients. According to Toroptsev, the process of moving users from Binance to CommEX will take place in stages. Initially, users will be able to log into CommEX using their Binance account, transferring only basic information for the customer identity verification process (KYC) and login details. Full KYC data is to be transferred within a week.
One of the main reasons for Binance’s withdrawal from Russia is pressure from U.S. regulators. They have been accused of money laundering and evading sanctions. Binance has also introduced restrictions for Russian users, such as a ban on having an account balance exceeding $10,000 and limiting transactions to rubles.
In addition to these challenges, it’s worth noting that despite taking over Russian operations, CommEX remains registered in Seychelles and focuses on Asian markets and CIS countries. This relative lack of transparency and the platform’s young status could mean potential risks of fraud, hacker attacks, or security vulnerabilities, as warned by Roman Nekrasov, co-founder of the ENCRY Foundation.
The cryptocurrency market remains dynamic, and Binance’s recentralization in Russia is another example of the giant adapting in response to regulatory pressure and changing market conditions.
Photo by Vadim Artyukhin on Unsplash
