Cryptocurrency exchange Binance has announced its complete departure from the Russian market by selling its Russian business to a newly established crypto exchange known as CommEX. While the financial terms of the transaction remain undisclosed, this marks Binance’s full exit from Russia, with no revenue-sharing arrangement or share repurchase options, as confirmed by both companies.
The off-boarding process for existing Russian users is expected to span up to one year, with Binance assuring users that all their assets are secure. Binance’s Chief Compliance Officer, Noah Perlman, acknowledged the decision, stating that operating in Russia no longer aligns with Binance’s compliance strategy. He emphasized Binance’s commitment to the long-term growth of the Web3 industry globally and its focus on the 100+ other countries in which it operates.
Binance will work alongside CommEX to facilitate a smooth migration process for users, guiding them on transferring their assets to the newly established exchange. Russian users who have completed Know Your Customer (KYC) checks will have the option to migrate immediately to CommEX. Over the coming months, Binance will gradually phase out its platform in Russia, aiming to minimize disruptions and ensure a seamless transition for users.
Binance CEO Changpeng Zhao also assured holders of Binance’s native token, BNB, that they will continue to benefit from a 25% trading discount on CommEX.
Notably, Binance’s exit from Russia includes no ongoing revenue-sharing arrangements or options to repurchase shares in the newly formed exchange, emphasizing a complete divestiture.
This announcement follows closely on the heels of CommEX’s launch on September 26. The platform, offering cryptocurrency trading services, including spot, futures, and peer-to-peer trading, initially targets Russian users, with its interface available in both Russian and English.
Binance’s decision to exit the Russian market comes in response to ongoing regulatory challenges related to compliance with Western sanctions against Russia. Despite regulatory pressures, Binance continued to serve Russian users until August 2023. However, the exchange witnessed the departure of its top Russian executives in early September.
Russia has been one of Binance’s largest markets, with the website Binance.com receiving a substantial number of user visits from the region, accounting for 6.9% of total visits at the time of reporting, according to data from SimilarWeb.