Due to compliance issues, Binance Russia has decided to sell its entire operations to CommEX, thus marking Binance’s complete withdrawal from the Russian market.
In their forward-looking approach, they acknowledge that maintaining the operation of Binance Russia does not align with Binance’s compliance strategy, stated Noah Perlman, the Chief Compliance Officer of Binance, in a press release.
CommEX, a cryptocurrency exchange, was officially launched on Tuesday and introduced BTC/USDT and ETH/USDT trading pairs for spot trading in July. On their social media account, CommEX, now known as X, greeted new users from Russia and various parts of the globe on Wednesday.
Binance Russia to exit market amid DOJ investigation
Earlier this year, reports emerged regarding the Department of Justice investigating Binance for potential violations related to Russian customers accessing the exchange. Violations might have breached US sanctions linked to Russia’s invasion of Ukraine. In August, Binance Russia announced its decision to sever connections with Russian banks subject to sanctions.
Binance will completely withdraw from Russia due to the sale. Officials said Binance will gradually discontinue all exchange services and business operations in the country over the coming months.
The press release clarified that unlike similar arrangements made by international companies in Russia, Binance Russia will not retain any ongoing revenue-sharing agreement from the sale, nor does it hold the option to repurchase shares in the business.
CommEx restricts jurisdictions, limited transparency on founders
CommEX has announced that it will not accept customers from the United States, the European Union, and certain other jurisdictions.
Additionally, the off-boarding process for Russian users will extend for up to one year. The firm assures that all users’ assets will remain secure and safeguarded.
At the time of the announcement, there was limited information about CommEx’s founders or its background.
The exchange was officially launched on September 26, 2023, merely one day before Binance Russia revealed the sale of its business to this newly established exchange. However, the specific amount of the transaction remains undisclosed.
A spokesperson did mention that CommEx is registered in the Seychelles and will operate as a global exchange with a primary focus on two key regions: the Commonwealth of Independent States (CIS) and Asia.
But, the CommEx spokesperson did not answer the user inquiries about the company’s owners or executives in the official Telegram group.
CommEx launches with browser platform, gains CoinMarketCap listing
CommEx currently offers only a browser-based version of its platform, with plans to introduce a mobile app soon upon its launch.
Remarkably, despite being launched just a day ago, CommEx is already listed on CoinMarketCap, a prominent cryptocurrency tracking website owned by Binance since April 2020.
However, it’s worth noting that as of the time of writing, rival market tracker CoinGecko does not provide any information about CommEx.
CommEx will initially facilitate peer-to-peer (P2P) transactions in Russia, enabling users to exchange cryptocurrencies directly without utilizing the platform’s fiat channels.
The CommEx’s Telegram group spokesperson also indicated that the platform plans to introduce spot trading of USDT against Russia’s fiat currency, the ruble, once the fiat channels become operational.
Binance Russia’s transition to CommEx sparks speculation
A spokesperson from Binance clarified to Cointelegraph that transitioning to CommEx would be entirely optional for Binance users. They emphasized that users are free to withdraw their funds to another platform.
Additionally, users can migrate their assets to CommEx if they wish to do so.
Binance Russia made the announcement that has sparked speculation within the local crypto community regarding the ownership of Binance’s successor in Russia.
Some users have pointed out similarities in the website layouts of Binance Russia and CommEx, with a few suggesting that CommEx is essentially a “full copy” of Binance’s website.
One commenter, whose comment has since been deleted from CommEx’s Telegram group, mentioned, “They just changed the logo and colors, but essentially it’s the same website. I wouldn’t be surprised if Russian tops who left Binance would be managing directors here.”
Binance CEO Changpeng Zhao later confirmed that former team members of Binance CIS “may join their team, or have already done so.” This follows the departure of several Binance CIS executives, including Binance VP Eastern Europe Gleb Kostarev, in early September.
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