Binance exits Russia as part of crypto exchange’s compliance strategy
“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.”
In a significant shift in the cryptocurrency landscape, global blockchain leader, Binance, has announced the sale of its entire Russian business to CommEX, a prominent player in the digital currency domain.
To ensure a seamless transition for its existing users in Russia, Binance has detailed an extended off-boarding timeline that will span up to a year. During this period, the company reassures its clientele that all their assets will remain intact and fully protected.
The decision to leave Russia follows its recent decision to ban Russian banks.
“Operating in Russia is not compatible with Binance’s compliance strategy”
This decision, as outlined by Binance’s Chief Compliance Officer, Noah Perlman, is rooted in the company’s forward-looking compliance strategy. “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.”
A systematic migration plan is set to roll out, with Binance and CommEX working hand-in-hand to guide users on transferring their assets to the latter’s platform.
Starting immediately, a segment of the new user registrations from Russia that pass KYC will be redirected to CommEX, with plans to scale this redirection incrementally. Over the ensuing months, Binance intends to methodically wind down all its exchange services and business operations in Russia. The primary goal throughout this transition, as emphasized by the company, is to uphold a fluid user experience.
Although the specific financial aspects of this monumental deal remain undisclosed, one clear message resonates: Binance’s exit from Russia is absolute. Contrary to similar ventures by global companies in Russia, Binance won’t retain any revenue shares post-sale, nor will it possess any rights to repurchase shares in the divested business.
Over the years, Binance has fortified its compliance framework and boasts licenses and registrations across 18 countries, with an additional five secured since the start of 2023 in the midst of regulatory hurdles. The firm has recently secured licenses in El Salvador, launches payments in Brazil, expanded its offering in Japan, and returned to Belgium.
