Renowned cryptocurrency exchange Binance has decided to leave the Russian market altogether. It is selling all its operations in the country to a new platform called CommEX. In this article, we’ll explore the reasons behind this major decision and the consequences for Russian users.

Background to Binance’s decision

The company said in a statement issued on September 27 that it had reached an agreement to sell all its Russian operations to CommEX. This decision follows numerous regulatory challenges related to compliance with Western sanctions against Russia. Despite these pressures, the exchange continued to promote its services to Russian users from August 2023. However, this withdrawal did not come without preparation. Binance worked closely with CommEX to ensure a smooth transition for its existing Russian customers.

How to transfer to CommEX ?

According to the announcement, the integration process will take up to a year. During this period, Binance will cooperate with CommEX. It will inform users on how to transfer their assets to the new platform. Binance CEO Changpeng Zhao said that holders of the native Binance and BNB token will still be entitled to a 25% discount on transactions carried out on CommEX.

A complete and definitive retirement for Binance in Russia

The announcement stresses that Binance will withdraw entirely from the Russian market and will have no affiliation with the exchange. The company said, “Unlike other similar agreements, Binance will not receive any shared revenues resulting from the sale. Binance will also not have the option of buying back shares in the company”.

A new start for CommEX

The new CommEX platform seems to be primarily targeting Russian users at the time of its launch. Indeed, its interface is only available in Russian and English. It remains to be seen whether it will attract the same number of users that Binance managed to gather in this country. According to SimilarWeb data, Russia was the leading market in terms of user visits to Binance.com. It accounted for 6.9% of total visits at the time of writing.

Impact on Russia’s cryptocurrency industry

Binance was a major and highly regarded exchange platform in the country. Its departure could have a significant impact on the cryptocurrency industry in Russia. However, by handing over its business to CommEX, the company is ensuring that Russian users won’t be left without options. They will be able to continue trading cryptocurrencies on a new platform.

• Effect on the ecosystem: Binance’s departure could prompt other market players to reconsider their presence in Russia. They will be forced to comply with global regulatory requirements.
• Influence on investors: Russian investors may be more cautious about investing in cryptocurrencies as a result of this decision.

Conclusion

Binance’s withdrawal from the Russian market marks an important milestone in the evolution of the cryptocurrency industry. It underscores the growing challenges faced by companies in the sector to comply with international regulations. While this decision may lead to significant changes for Russian users, it also paves the way for new opportunities.