Binance, one of the world's largest cryptocurrency exchanges, is completely exiting the Russian market and selling its business to Commex. The decision aligns with Binance's compliance strategy, and the off-boarding process for existing Russian users will take up to a year. Binance clarified that there will be no ongoing revenue split or buyback options, emphasizing its confidence in the long-term growth of the global Web3 industry.
Binance Completes Full Exit from Russian Market, Sells Business to Commex
Binance, a leading global cryptocurrency exchange, has officially announced its complete exit from the Russian market. In a strategic move, the company has entered into an agreement to sell its entire business in Russia to Commex, a centralized cryptocurrency exchange backed by top-tier crypto venture capital.
To ensure a smooth transition for existing Russian users, the off-boarding process is expected to take up to one year. Binance emphasized that unlike similar deals in Russia, there will be no ongoing revenue split or options for Binance to buy back shares in the business. Commex is designed to serve users outside the U.S. and EU, with IP and KYC blocks in place as part of the deal to ensure a seamless user experience.
Changpeng Zhao (CZ), CEO of Binance, provided additional insights, noting that Commex does not service U.S. or EU users and has design and APIs similar to Binance. CZ clarified that he is not the ultimate beneficial owner (UBO) of Commex and does not own any shares in the company. The deal does not include buyback options.
Noah Perlman, Binance's Chief Compliance Officer, highlighted the decision's alignment with Binance's compliance strategy, stating that operating in Russia is not compatible with the company's long-term goals. Perlman expressed confidence in the sustained growth of the Web3 industry globally and affirmed that Binance will concentrate its efforts on the 100+ other countries where it operates.
As part of the transition, a portion of Russian KYC'd new user registrations will be redirected to Commex immediately and will gradually scale up over time. Binance will progressively phase out all exchange services and business lines in Russia over the next several months. The financial details of the deal with Commex have not been disclosed.
(Kevin Helms, Bitcoin News, 2023)