In a significant move, Binance, one of the world’s leading cryptocurrency exchanges, has announced its decision to sell its entire Russian operations to the newly launched crypto exchange, CommEX. The transition, aimed at ensuring a seamless experience for its existing Russian clientele, is expected to span over a year. Binance assures that the assets of its Russian users remain secure throughout this period.
Binance Is Done With Russian Regulators
Following the downfall of FTX, Binance emerged as the undisputed leader in the crypto market. However, within a year, the tables have turned, and Binance now faces its own set of challenges. Facing potential enforcement actions from U.S. regulatory bodies and from across the globe, Binance’s stronghold is showing cracks.
Following months of facing hurdles in continuing its Russian operations, Binance has now finally decided to completely exit the Russian market. However, the crypto exchange is not leaving users behind as the firm has teamed up with CommEx to make a smooth transition for its users.
Noah Perlman, Binance’s Chief Compliance Officer, said, “As we look toward the future, we recognise 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.”
Binance already witnessed the exit of two pivotal executives connected to its Russian operations, amidst significant regulatory hurdles tied to sanctions. On September 6, Gleb Kostarev, who led Binance’s efforts in Eastern Europe and Russia, announced his resignation on Facebook. In his post, written in Russian, Kostarev mentioned that this day marks the end of his extensive tenure at Binance.
He elaborated that he’s relinquishing his role as the vice president overseeing regions including Eastern Europe, the Commonwealth of Independent States (CIS), Turkey, Australia, and New Zealand. Furthermore, he mentioned stepping down from his responsibilities in the Asia-Pacific region a few months prior.
Binance Ensures Orderly Process Of Transition
To facilitate a smooth migration, Binance and CommEX are joining hands. They will guide users on transferring their assets to CommEX. Starting immediately, a segment of new users from Russia undergoing the KYC process will be directed to CommEX, with the number increasing progressively. Over the forthcoming months, Binance plans to gradually wind down all its services and business operations in the Russian territory, ensuring minimal disruption for its users.
While the exact financial terms of this deal remain confidential, it’s clear that Binance is making a complete exit from Russia. Unlike other international firms that have struck deals in the country, Binance won’t retain any revenue share post-sale, nor will it have any rights to repurchase shares in the future.
Upon further research by the Blockchain Reporter team, it was discovered that the CommEx crypto exchange was only established in September, and its exchange was announced on Twitter just 20 hours prior. The connection between Binance and the operations of this new exchange remains uncertain.
In recent months, over a dozen top-tier executives have departed, and the company has let go of approximately 1,500 staff members in a bid to reduce expenses and brace for a potential business slowdown. Although Binance remains a significant player in the crypto space, its once-unquestioned dominance is now on shaky ground. Binance has also shut down its operations in Canada, Netherlands etc.
