Crypto exchange Binance is selling its entire Russian business to CommEX as part of its exit strategy. The move is due to compliance concerns.
Binance’s Chief Compliance Officer, Noah Perlman, stated that operating in Russia doesn’t align with their compliance strategy. “As we look toward the future, we recognize that operating in Russia is incompatible with Binance’s compliance strategy,” said Perlman.
Binance said on Wednesday that with the sale, it would exit the country altogether. It also says that “Binance will sunset all exchange services and business lines in Russia” over the next several months.
“Unlike similar deals from international companies in Russia, Binance will have no ongoing revenue split from the sale, nor does it maintain any option to buy back shares in the business,” the release said.
Is users’ funds safe?
The off-boarding process will take up to one year. All assets of existing Russian users are safe and securely protected.
An organized user migration process will take place. Binance and CommEX will collaborate to guide users on transferring their assets to CommEX. Some newly registered Russian KYC users will be directed to CommEX immediately. Binance will gradually discontinue all exchange services and business operations in Russia over the next few months. Efforts will be made to ensure a seamless user experience during this transition.
While the financial terms of the agreement won’t be disclosed, it’s crucial to highlight that this sale marks Binance’s complete withdrawal from the Russian market. In contrast to similar deals involving international companies in Russia, Binance will not receive any ongoing revenue share from the sale, nor will it have the option to repurchase shares in the business.
