Binance Exits Russian Market, Hands Over Local Operations to CommEX

Binance, a leading cryptocurrency exchange, has announced its departure from the Russian market, transferring its local operations to CommEX. The company revealed that the complete withdrawal will span a year.

Russian users’ funds will remain untouched during this process.

The decision to leave Russia stems from an inconsistency with the exchange’s compliance strategy in the present regulatory framework, as shared by Binance’s COO, Noah Perlman.

Yet, despite this move, Binance maintains a positive outlook on the future of web3. The firm plans to redirect its focus to its activities in over 100 different nations.

To ensure a hassle-free transition for its clientele, Binance will orchestrate its Russian exit meticulously. This includes dissolving its collaboration with CommEX and assisting users in moving their assets to CommEX.

New customers in Russia who have undergone the KYC procedure will be methodically directed to CommEX.

Changpeng Zhao, Binance’s CEO, reiterated the company’s decision to leave, emphasizing the security of user funds.

In the upcoming months, Binance plans to gradually discontinue all its trading services and business activities in Russia, prioritizing a smooth user experience during the shift.

While the finer points of the agreement remain private, it’s clear that Binance’s departure signifies a full withdrawal from the Russian landscape. The exchange will not retain any portion of the sale or have rights to buy back any business stakes.

Earlier, in August, Binance introduced tighter controls for its Russian clientele. Notably, the platform curtailed its peer-to-peer (P2P) payment functionality, exclusively permitting access to the Russian ruble for users with Russian verification.

Subsequently, the platform adjusted the identification of cards linked to major banks on its P2P system, marking them with “green” and “yellow” indicators.

These amendments came after allegations of Binance facilitating currency transfers for Russians overseas.

Soon after, Binance saw the departure of two senior executives, Gleb Kostarev, the Eastern Europe director, and Vladimir Smerkis, the CIS director.