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Binance, the world’s leading crypto exchange, has divested its entire Russian operations to CommEX, a centralized exchange backed by top-tier crypto venture capital. The off-boarding process is set to last a year, and the deal’s financial terms remain undisclosed.
“As we look toward the future, we recognize that operating in Russia is not compatible with Binance’s compliance strategy.” – Noah Perlman, Binance’s Chief Compliance Officer
The exchange aims to shift its focus toward growing markets and align its business model with local regulatory requirements in over 100 countries where it currently operates.
Binance has entered into an agreement to sell the entirety of its Russia business to CommEX (https://t.co/JJRKCo9coA).
— Binance (@binance) September 27, 2023
To ensure a smooth process for existing Russian users, the off-boarding process will take up to one year. All assets of existing Russian users are safe and…
Transition Plan: Users First, Says Binance
Binance’s phased off-boarding process aims to last up to a year to ensure a smooth transition for existing Russian users. “All assets of existing Russian users are safe and securely protected,” assures the official statement. CommEX will absorb these users, and plans are in place to inform them on how to migrate their assets.
Who Is CommEX?
CommEX, the new player set to inherit Binance’s Russian business, comes with its own set of credentials. Backed by top-tier crypto VC, it boasts an experienced team committed to “delivering accessibility, security, and innovation” to its users worldwide.
“The sale of Binance’s Russia business to CommEX reflects a thoughtful approach that prioritizes existing users’ interests and assets,” says Richquack, a famous crypto influencer. He believes the deal also showcases Binance’s adaptability and strategic focus on markets with a more favorable regulatory climate.
But what does this mean for the cryptocurrency ecosystem in Russia? The industry has been in regulatory limbo for years, with lawmakers grappling over cryptocurrency legislation. Binance’s departure may indeed be the stimulus for a significant market shift, compelling other companies to reevaluate their operational strategies in Russia.
While the long-term impact on the Web3 industry remains unclear, this move sets a significant precedent. Binance’s sale is one of Russia’s first major international companies without an ongoing revenue split or a buy-back option, marking a complete exit.