Binance cryptocurrency exchange will leave Russian market. The business will be sold to CommEX; the parties have already entered into a corresponding agreement.
The complete process of transferring users to the new platform will take up to one year. Binance emphasized that all assets of existing Russian clients are reliably protected.
“As we look to the future, we recognize that operating in Russia is inconsistent with Binance’s compliance strategy,” said Binance Chief Compliance Officer Noah Perlman.
Over the next few months, Binance will close all exchange services and business lines in Russia. Some new users who have passed KYC in the Russian Federation will be immediately redirected to CommEX.
The financial details of the transaction are not disclosed, but it is known that as a result of this sale, Binance will completely leave the Russian Federation.
“Binance will not have an ongoing share of the proceeds from the sale, nor will it have the ability to buy back shares in the business,” the exchange added.
September 27, 2023 | 11:46 Update:
In a comment to ForkLog, a Binance representative said that Russian citizens legally residing in other countries can use the services and products of the exchange, subject to compliance with sanctions rules.
During the transition, the trading platform will continue to protect customers’ personal information by encrypting data in storage and in transit. Binance will provide migration instructions to the new exchange shortly.
“There is absolutely no requirement for users to switch to CommEX. If they wish, they can also withdraw their funds to another platform,” said representatives of the exchange.
At the same time, Binance CEO Changpeng Zhao said that BNB holders will have a 25% discount on trading on CommEx.
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Everything will be done to ensure a smooth transition. All user funds are safe!
Also:
Among other things, #BNB holders will continue to enjoy a 25% trading fee discount on @CommEX_com. https://t.co/52pak53CqE
— CZ 🔶 Binance (@cz_binance) September 27, 2023
Binance did not comment on the choice of the transaction partner. It is known that the CommEX exchange announced the launch September 26.
Overall, Binance believes that the decision to withdraw from Russia will have a limited impact on its global business, as the company has been “gradually reducing its presence” in the country for a long time.
Let us recall that at the end of August, Binance removed the banks Sber, Tinkoff and Alfa, which were under American sanctions, from its P2P platforms.
The exchange also prohibited Russians from exchanging transactions with any fiat currencies except the ruble.
One of the experts interviewed by ForkLog suggested considering the possibility of blocking exchanges that introduce restrictions in the Russian Federation.
Against this background, Binance representatives said that they are also exploring the possibility of completely leaving the jurisdiction.
At the beginning of September, the director for Eastern Europe, Gleb Kostarev, and the director for the CIS, Vladimir Smerkis, left Binance. Both were also responsible for running the company’s business in the Russian Federation.
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2023-09-27 08:18:42
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