Binance's Strategic Exit: Welcoming CommEX
Binance, a titan in the cryptocurrency exchange realm, has made public its strategic move for a comprehensive exit from the Russian market. This involves a divestiture of its operations to the newly birthed crypto exchange entity known by the moniker CommEX.
In a disclosure that came to light on the 27th of September, Binance formalized a deal to shift its complete business portfolio in Russia to CommEX, albeit keeping the intricate financial details close to the chest.
In order to facilitate a smooth and seamless transition for the existing Russian clientele, the offboarding process is set to unfold gradually over the course of a year, as outlined in the announcement. Binance was keen to reassure its users, stating, "All assets belonging to our current Russian users remain safeguarded and under a robust shield of protection."
Recognizing the dissonance between operating within Russia and Binance's stringent compliance framework, Chief Compliance Officer Noah Perlman articulated, "Peering into the future, we recognize that continued operations in Russia are not congruent with Binance’s compliance ethos." He further added, "Our optimism is unwavering regarding the sustained growth of the burgeoning global Web3 sector, and we are redirecting our endeavors towards the 100+ other nations within our operational purview."
Binance is firmly committed to orchestrating a meticulously planned transition for its esteemed customer base. In close collaboration with CommEX, the exchange will extend guidance to users on the seamless migration of their assets to the newly minted platform.
The user migration process is designed to expedite the redirection of a select segment of Russian users, who have successfully undergone Know Your Customer checks, to CommEX. This transition will occur gradually over the coming months as Binance gradually phases out its platform in Russia.
We are steadfast in our dedication to preserving an unparalleled user experience during this transitional phase," emphasized Binance in the official communication.
Changpeng Zhao, the illustrious CEO of Binance, also confirmed that holders of Binance’s native token, BNB, currently priced at $213, will persist in enjoying a generous 25% trading discount on CommEX.
Everything will be done to ensure a smooth transition. All user funds are safe!— CZ ???? Binance (@cz_binance) September 27, 2023
Among other things, #BNB holders will continue to enjoy a 25% trading fee discount on @CommEX_com. https://t.co/52pak53CqE
The official release underscored unequivocally that Binance is set for an all-encompassing departure from Russia, severing all ties with the exchange. The official statement made it clear, "In stark contrast to analogous transactions involving international conglomerates in Russia, Binance will not retain any ongoing revenue share from the sale, nor will it possess an option to repurchase shares in the enterprise."
This strategic development was unveiled a mere day after CommEX announced its official launch on September 26. The platform has been meticulously designed to offer a comprehensive array of cryptocurrency trading services, including spot, futures, and peer-to-peer trading. At present, the interface is tailored primarily to cater to Russian users, as it is available solely in Russian and English.
Binance has been meticulously planning its exit strategy from the Russian market for a considerable duration, navigating significant regulatory hurdles tied to compliance with Western sanctions against Russia. Notably, even amidst regulatory pressures, as of August 2023, Binance persisted in promoting its services to its Russian user base. However, the exchange eventually witnessed the departure of its top-ranking Russian executives in early September.