Binance Halts Operations in Russia — Crypto Exchange Sets Sights on 100+ Other Nations

Binance is a cryptocurrency exchange, that will discontinue all of its exchange services and business operations in Russia. The company has formalized a sales arrangement with Commex. A Binance executive clarified that conducting business in Russia is incongruent with the company’s compliance strategy. They emphasized, “We maintain our confidence in the enduring global growth of the Web3 industry and will direct our efforts towards the 100+ other countries where we have a presence.”

Binance’s Complete Withdrawal from Russia

Last Wednesday, cryptocurrency exchange Binance officially revealed its decision to completely withdraw from the Russian market. In the announcement, it was stated that “Binance has engaged in an agreement to divest its entire Russian business to Commex.” According to the information available on Commex’s website, it is described as “a centralized cryptocurrency exchange supported by prominent cryptocurrency venture capital.”

Binance also emphasized its commitment to facilitating a seamless transition for its current Russian user base, indicating that the off-boarding procedure would be carried out over a period of up to one year. The cryptocurrency exchange pointed out that financial details of the transaction would not be disclosed, underscoring their discretion in this regard.

“It’s worth highlighting that through this sale, Binance is completing its exit from the Russian market.

The cryptocurrency exchange made it clear that, unlike similar transactions involving international companies in Russia, Binance will not have any ongoing revenue sharing arrangement from the sale, nor will it retain the option to repurchase shares in the business.

Additionally, Binance CEO Changpeng Zhao (CZ) provided further details about the sale of Binance’s Russian operations to Commex on Thursday. In his statement on X, he explained, “Commex does not serve users from the U.S. or EU, and they have implemented IP and KYC blocks. This was a stipulation we requested as part of the deal… Their platform design, APIs, and other aspects are similar to Binance. We included this to ensure a seamless user experience.” CZ also clarified, “I am not the ultimate beneficial owner (UBO) of Commex, and I do not hold any shares in the company. The agreement does not include any options for repurchasing.”

“As we cast our gaze toward the future, it becomes evident that conducting operations in Russia does not align with Binance’s compliance strategy.

Perlman expressed his confidence, stating, “We maintain our belief in the enduring global growth of the Web3 industry, and we will direct our efforts towards the 100+ other countries where we have a presence.” It’s worth noting that Binance’s website indicates its availability in over 100 countries worldwide, although it specifically lists only 45 countries.

Binance provided further details, explaining, “A portion of newly registered Russian users’ KYC (Know Your Customer) data will be promptly directed to Commex, and this allocation will gradually increase over time.” The exchange added:

“In the upcoming months, Binance will progressively discontinue all exchange services and business operations in Russia.

Please share your thoughts on Binance’s decision to cease all of its cryptocurrency exchange services in Russia in the comments section below.

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