To completely quit the market due to compliance issues, cryptocurrency exchange Binance is going to sell to CommEX the totality of its operations in Russia.
“As we look toward the future, we recognize that operating in Russia is not compatible with Binance’s compliance strategy,” Noah Perlman, Binance’s chief compliance officer, stated in a press statement.
Although it seemed to advertise BTC/USDT and ETH/USDT trading pairs for spot trading in July, CommEX looks to be a cryptocurrency exchange that was just formally established on Tuesday. On Wednesday, CommEX posted on its X (formerly Twitter) account to welcome “new users from Russia and around the world!”
Earlier this year, it was said that Binance was the subject of a Department of Justice investigation investigating whether Russian users were able to use the exchange in defiance of American sanctions relating to Russia’s invasion of Ukraine. The company said in August that it was severing links with sanctioned Russian institutions.
On Wednesday, Binance said that the transaction would result in its entire withdrawal from the nation. It also stated that “Binance will sunset all exchange services and business lines in Russia” during the next few 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 stated.
According to CommEX, it will not accept clients from the US, EU, or several other countries.
All of the assets of the current Russian customers will be “safe and protected,” the company added, and the off-boarding procedure will take up to a year.
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