Binance Announces Exit from Russian Market, Sells Operations to CommEX
Binance, one of the world’s largest and most prominent cryptocurrency exchanges, has announced its complete exit from the Russian market. The exchange has entered into an agreement to sell its Russian operations to CommEX, a move that reflects Binance’s commitment to its global compliance strategy.
The decision to divest from Russia comes as Binance aims to align its operations with evolving global compliance standards and regulations. Noah Perlman, Binance’s Chief Compliance Officer, emphasized this point, stating, “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.”
Binance has entered into an agreement to sell the entirety of its Russia business to CommEX (https://t.co/JJRKCo9coA).
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…
— Binance (@binance) September 27, 2023
As part of this strategic shift, Binance will work closely with CommEX to ensure a smooth transition for its Russian user base. The off-boarding process for existing Russian users will take up to one year, during which time all assets of these users will be kept safe and securely protected.
To facilitate the migration of users to CommEX, Binance and CommEX will collaborate to provide users with comprehensive information on how to transfer their assets seamlessly. A notable aspect of this transition is that a portion of new user registrations in Russia, specifically those who have completed Know Your Customer (KYC) procedures, will be redirected to CommEX immediately. This redirection will gradually scale up over time, ensuring a gradual and orderly transition.
Over the next few months, Binance will phase out all its exchange services and business lines in Russia. Despite this substantial shift, the exchange is committed to maintaining a smooth and user-friendly experience for its customers throughout the transition period.
While the financial details of the deal remain undisclosed, it is important to note that Binance’s exit from the Russian market differs significantly from similar transactions involving international companies in Russia. Binance will not retain any ongoing revenue share from the sale, nor does it possess any option to repurchase shares in the Russian business, underlining its complete departure from the market.
This announcement marks a pivotal moment in Binance’s journey as it continues to adapt to the evolving landscape of cryptocurrency regulation and compliance on a global scale. The sale of its Russian operations to CommEX signifies Binance’s commitment to ensuring the safety and satisfaction of its user base while adhering to the highest industry standards.
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