Binance, a cryptocurrency exchange, is discontinuing its exchange services and business ventures in Russia. With Commex, the business has a sales agreement. Operating in Russia is incompatible with the company's compliance plan, according to a Binance executive. He stressed, "We remain optimistic about the long-term development of the Web3 business globally and will concentrate our efforts on the more than 100 additional countries in which we operate.
Binance Fully Exiting Russia
Binance fully leaving the cryptocurrency market in Russia Binance declared on Wednesday that it will completely leave Russia. The release states that "Binance has entered into an agreement to sell the entirety of its Russia business to Commex." Commex is described on its website as "a centralized cryptocurrency exchange backed by top-tier crypto VC."
According to Binance, "the off-boarding process will take up to one year" in order to "ensure a smooth process for existing Russian users." The cryptocurrency exchange emphasized that the financial terms of the deal would not be disclosed:
It is significant to note that Binance completely withdraws from Russia with this sale.
According to the cryptocurrency exchange, "unlike deals from international companies in Russia, Binance will have no ongoing revenue split from the sale, nor does it maintain any option to buy back shares in the business."
Changpeng Zhao (CZ), the CEO of Binance, clarified a few things about the sale of Binance's Russian business to Commex on Thursday. "Commex does not service U.S. or EU users," he wrote on X. IP and KYC bans are in place. This is a clause we requested in the agreement. They resemble Binance in terms of their layout, APIs, etc. We requested this to provide a positive customer experience. "I am not their UBO [ultimate beneficial owner] and I do not own any shares there," CZ added. The agreement has no buyback provisions.
Chief Compliance Officer for Binance, Noah Perlman, explained:
We understand that operating in Russia is incompatible with Binance's compliance strategy as we move to the future.
"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," Perlman said. The cryptocurrency exchange, according to the Binance website, is accessible in more than 100 nations worldwide. Only 45 nations are specifically listed, though.
According to a statement made by Binance, "A portion of Russian KYC'd new user registration will immediately be redirected to Commex and will scale up over time." The conversation continued:
Binance will discontinue all exchange services and business lines in Russia over the next months.
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