In a groundbreaking turn of events, cryptocurrency exchange Binance has announced its departure from the Russian market, finalizing an agreement to transfer its entire Russia-based operations to digital-asset exchange CommEX. This move marks a pivotal shift in Binance’s global compliance strategy.
Binance has entered into an agreement to sell the entirety of its Russia business to CommEX (https://t.co/JJRKCo9coA).
— Binance (@binance) September 27, 2023
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…
According to a recent report, a meticulous off-boarding process, spanning up to a year, is designed to ensure a seamless transition for its existing Russian user base. It emphasized that all assets belonging to current Russian users will remain entirely secure and protected throughout this transition period.
Chief Compliance Officer of Binance, Noah Perlman, stated,
As we look toward the future, we recognize that operating in Russia is incompatible with the firm’s compliance strategy. We remain confident in the long-term growth of the Web3 industry worldwide and will focus our energy on the 100+ other countries in which we operate.
In a strategic partnership, Binance has joined forces with CommEX to facilitate a smooth migration for users. Notably, CommEX would manage some new user registrations in Russia, contingent upon the completion of Know Your Customer (KYC) processes, with plans to scale up this redirection over time incrementally.
In the upcoming months, Binance would gradually discontinue all exchange services and business operations in Russia. Diligent measures will be taken to uphold a seamless user experience throughout this transitional period.
Although the intricate financial details of this momentous deal would remain undisclosed, the trading platform has disclosed a critical aspect, its exit from Russia is absolute and unequivocal. In a departure from some international companies that maintain revenue-sharing agreements in Russia, Binance has chosen a clean break. It would not retain any ongoing revenue-sharing arrangements from the sale, nor does it hold any options to repurchase shares in the divested business.
This strategic maneuver by Binance underscores its unwavering commitment to compliance and signifies a significant juncture in the ever-evolving landscape of global cryptocurrency exchanges. As Binance ventures into its next chapter, it stands resolute in its dedication to nurturing innovation and propelling the expansion of Web3 technologies worldwide.
