Binance exits Russia following CommEX sale

Crypto exchange Binance has agreed to sell all of its Russia business to CommEX as it aims to totally exit the market over compliance issues.

According to the firm: “Binance has entered into an agreement to sell the entirety of its Russia business to CommEX. 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 securely protected.

“As we look toward the future, we recognise that operating in Russia is not compatible with Binance’s compliance strategy,” said Noah Perlman, Binance’s Chief Compliance Officer. “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 adds: “There will be an orderly process for the migration of users. Binance and CommEX will partner to inform users how to migrate their assets to CommEX. A portion of Russian KYC’d new user registration will immediately be redirected to CommEX and will scale up over time. Over the next several months, Binance will sunset all exchange services and business lines in Russia. Every effort will be made to maintain a smooth user experience during this transition.”

“While financial details of the deal will not be disclosed, 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.”

CommEX is a crypto exchange that was launched on Tuesday. On its X (formerly Twitter) page, CommEX yesterday welcomed its “new users from Russia and around the world!”

Binance and Russia

Last month, Binance spokesperson told The Wall Street Journal that the exchange was weighing different options in regard to Russia, “including a full exit” after reports of the exchange blocking Russian clients from accessing cryptos on its P2P platform.