Binance sells Russian business amid investigations by US authorities
Binance, the world's largest cryptocurrency exchange, has announced its complete exit from Russia by selling its entire Russia-based operations to crypto firm CommEX. The financial terms of the deal remain undisclosed, and Binance will not retain any ongoing revenue split or option to buy back shares. The off-boarding process for existing Russian users will take up to one year, with all assets securely protected.
Compliance strategy drives Binance's exit
Binance's Chief Compliance Officer, Noah Perlman, stated, "As we look toward the future, we recognize that operating in Russia is not compatible with Binance's compliance strategy." The move comes amid the company's broader focus on compliance and regulatory adherence in over 100 other countries where it continues to operate.
Smooth transition for Russian users assured
To ensure a smooth transition, Binance and CommEX have outlined an orderly process for migrating users and their assets. Existing Russian users have been assured that their assets are secure and will be protected throughout the transition period, which is expected to last up to one year. A portion of new user registrations from Russia will be immediately redirected to CommEX, scaling up over time.
Navigating global regulatory challenges
As Russia tightens regulations on crypto exchanges, the US is simultaneously investigating Binance for potential violations of US sanctions against Russia. Last year, the European Union broadened its sanctions, making it impossible for Russian residents to use any crypto service registered in the EU. This led other crypto platforms like LocalBitcoins, Crypto.com, and Blockchain.com to notify Russian users that their accounts would soon be discontinued. Binance's exit from the Russian market reflects its strategic approach to navigating global regulatory challenges.
