Binance Hands Over Russia’s Business to CommEX

Sahana Kiran
Source – Watcher Guru

For a considerable period, Binance, the world’s largest crypto exchange, has been evaluating the possibility of completely withdrawing from the Russian market. After multiple deliberations, the exchange has ultimately decided to transfer its Russian operations to CommEX. As noted in a recent blog post, Binance has confirmed that it has reached an agreement with the Russian company. This decision is rooted in both the compliance approach of the exchange and the requirements set forth by the Russian government. Noah Perlman, Binance’s Chief Compliance Officer, further said,

“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 will not have any continuous revenue-sharing agreement stemming from the sale. It affirmed that it will not retain the option to repurchase shares in the business. More recently, Gleb Kostarev, who served as the head of Binance’s Eastern Europe and Russia division, made public his resignation through a post in Russian on Facebook.

Also Read: Binance Leadership Undergoes Changes Amid Russian Market Concerns

Binance’s Offboarding Process Begins

Binance disclosed that the offboarding procedure is scheduled to span a period of one year. In fact, a systematic procedure will be established to facilitate the transfer of users. This timeframe has been established with the intention of facilitating a seamless departure for the exchange’s current Russian user base.

The crypto exchange and CommEX will collaborate to educate users on the process of migrating their assets to CommEX. A portion of newly registered Russian users who complete the Know Your Customer [KYC] process will be directed to CommEX right away. However, this redirection is expected to gradually increase over time. Furthermore, in the coming months, Binance will gradually discontinue all of its exchange services and business operations in Russia.

Also Read: Japan: Binance to Launch Dollar, Yen, Euro Stablecoins in 2024