Binance, one of the world’s largest cryptocurrency exchanges, has decided to exit the Russian market, opting to sell the entirety of its Russia subsidiary to CommEX Exchange.
In a statement released on Wednesday, Binance noted that it is entirely exiting Russia, closing all exchange services and business lines. According to the world’s leading blockchain ecosystem and digital assets exchange, the decision comes due to the challenging operating environment in the country.
In particular, Binance cited Russia’s incompatibility issues with its compliance strategy as the core reason behind the recent event. “As we look toward the future, we recognise that operating in Russia is not compatible with Binance’s compliance strategy,” Binance Chief Compliance Officer Noah Perlman remarked.
“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,” Perlman added. Thus, the development aligns with the top exchange’s strategy to focus on terrains with clear regulatory frameworks and growth potential.
CommEX Acquires Binance Russia Business
As part of the exit strategy, Binance revealed that its Russia business will be sold to CommEX, a newly launched community exchange. Launched officially on September 26 and headquartered in Russia, CommEX sees this acquisition as an opportunity to strengthen its presence in the Russian crypto market.
While Binance withheld the financial details of the deal, the exchange noted that there will be “no ongoing revenue split from the sale, nor does it maintain any option to buy back shares in the business.” Regarding existing Russian users’ assets, Binance said it will collaborate with CommEX to update users on how to migrate their assets, thereby, ensuring a smooth migration process.
“A portion of Russian KYC’d new user registration will immediately be redirected to CommEX and will scale up over time,” Binance submitted, adding that the overall off-boarding process for existing Russian users will span for a year.
It bears noting that the Changpeng Zhao-founded crypto exchange is undergoing regulatory scrutiny in the United States and other countries, which perhaps contributed to more than ten execs vacating their offices at the company in the past months.