Crypto exchange Binance is closing down all exchange services and business lines in Russia. The company has entered into a sales agreement with Commex. A Binance executive explained that operating in Russia is not compatible with the company’s compliance strategy. “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,” he emphasized.
Binance Fully Exiting Russia
Cryptocurrency exchange Binance announced Wednesday that it will fully exit Russia. According to the announcement: “Binance has entered into an agreement to sell the entirety of its Russia business to Commex.” According to its website, Commex is “a centralized cryptocurrency exchange backed by top-tier crypto VC.”
Binance added that to “ensure a smooth process for existing Russian users, the off-boarding process will take up to one year.” Noting that the financial details of the deal will not be disclosed, the crypto exchange stressed:
It is important to note that with this sale, Binance fully exits Russia.
“Unlike similar 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,” the cryptocurrency exchange clarified.
On Thursday, Binance CEO Changpeng Zhao (CZ) provided some clarifications regarding the sale of Binance’s Russian operations to Commex. He wrote on X: “Commex does not service U.S. or EU users. They have IP and KYC blocks. This is a term we asked for in the deal … Their design, APIs, etc are similar to Binance. We asked for this to ensure a smooth user experience.” CZ further said: “I am not their UBO [ultimate beneficial owner], nor do I own any shares there. The deal does not have any buyback options.”
Noah Perlman, Binance’s chief compliance officer, described:
As we look toward the future, we recognize that operating in Russia is not compatible with Binance’s compliance strategy.
“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 opined. According to Binance’s website, the crypto exchange is available in over 100 countries globally. However, only 45 countries are specifically mentioned.
Binance explained that “A portion of Russian KYC’d new user registration will immediately be redirected to Commex and will scale up over time.” The exchange continued:
Over the next several months, Binance will sunset all exchange services and business lines in Russia.
What do you think about Binance closing down all of its crypto exchange services in Russia? Let us know in the comments section below.
Source: Bitcoin
