Cryptocurrency trading platform Binance has announced a complete cessation of its exchange services and commercial activities in Russia. The firm has inked a sales contract with Commex to sell off its entire Russian business operations. A senior official from Binance stated that maintaining a presence in Russia is inconsistent with the organization’s regulatory compliance objectives. “Our focus will now shift toward the more than 100 other markets in which we are actively engaged,” the executive stated emphatically.
Complete Withdrawal from Russia by Binance
Binance publicly declared on Wednesday its intent to entirely divest from its Russian operations. Per the statement, “Binance has finalized a contractual agreement to transfer its complete Russian enterprise to Commex.” Commex is described on its website as a “centralized cryptocurrency exchange supported by elite crypto venture capital.”
To facilitate an orderly transition for its current Russian clientele, Binance mentioned that the phase-out period would span up to one year. Although the monetary specifics of the transaction remain confidential, Binance underscored:
The implication of this transaction is a full departure from the Russian market by Binance.
“Unlike other international corporations that have made similar exits from Russia, Binance will not retain any share of ongoing revenue from the transaction and holds no rights for share repurchase in the future,” Binance elucidated further.
Changpeng Zhao, the CEO of Binance, offered additional details on Thursday concerning the divestiture of the company’s Russian operations to Commex. He stated on platform X: “Commex will not serve users in the United States or the European Union. They employ IP and KYC restrictions. This was a stipulation we insisted upon … Their architectural design and APIs closely mirror those of Binance. This was requested to ensure a seamless user transition.” Zhao added, “I hold no position as their UBO [Ultimate Beneficial Owner], nor do I own any of their shares. There are no buyback clauses in the agreement.”
Noah Perlman, Binance’s Chief Compliance Officer, conveyed:
Our strategic vision for the future mandates that our operations in Russia are incompatible with Binance’s compliance directives.
“Our attention remains fixated on the robust long-term growth prospects of the Web3 sector globally, prioritizing the 100+ other countries where our services are rendered,” commented Perlman. As per Binance’s corporate website, the company offers its services in more than 100 countries worldwide, although only 45 of these are expressly listed.
Binance has specified that “An allocated fraction of new user registrations from Russia, post-KYC completion, will be immediately re-routed to Commex and will incrementally increase over time.” The firm also declared:
In the ensuing months, Binance will systematically phase out all its exchange functions and commercial enterprises within Russia.
What are your thoughts on Binance’s decision to terminate all of its cryptocurrency exchange activities in Russia? Please share your views in the comments section below.
Frequently Asked Questions (FAQs) about Binance exit from Russia
What is Binance’s reason for exiting the Russian market?
Binance is exiting the Russian market as part of aligning its business operations with its global compliance strategy. According to the company’s Chief Compliance Officer, Noah Perlman, maintaining operations in Russia is incompatible with Binance’s regulatory compliance objectives.
Who will take over Binance’s operations in Russia?
Commex, a centralized cryptocurrency exchange backed by top-tier crypto venture capital, will acquire the entirety of Binance’s Russian operations.
What will happen to existing Binance users in Russia?
To ensure a smooth transition, Binance has stated that the off-boarding process for existing Russian users will take up to one year. During this phase-out period, a portion of new user registrations from Russia will be redirected to Commex.
Will financial details of the sale be disclosed?
No, Binance has made it clear that the financial details of the transaction with Commex will not be disclosed to the public.
Does Binance maintain any ongoing stake or buy-back options in the Russian market after the sale?
No, unlike other similar international exits, Binance will not retain any share of ongoing revenue from the transaction and holds no rights for share repurchase in the future.
What is Binance’s future focus following its exit from Russia?
Binance aims to concentrate its energies on the more than 100 other markets where it currently operates. The company remains confident in the long-term growth prospects of the global Web3 industry.
Are there any specific requirements that Binance has asked Commex to follow?
Yes, Binance CEO Changpeng Zhao has clarified that Commex will not serve users from the United States or the European Union and will employ IP and KYC restrictions as part of the agreement. Furthermore, Commex’s architectural design and APIs are expected to closely mirror those of Binance to ensure a seamless user experience.
How many countries does Binance operate in globally?
According to Binance’s corporate website, the company offers its services in more than 100 countries worldwide, although only 45 of these are specifically mentioned.
More about Binance exit from Russia
- Binance Official Announcement
- Commex Official Website
- Binance’s Global Compliance Strategy
- Statement from Binance CEO Changpeng Zhao
- Noah Perlman, Binance’s Chief Compliance Officer, on Regulatory Compliance
- Global Web3 Industry Outlook
- Binance’s International Operations and Market Reach