Binance sells its Russian business to new exchange CommEX amid compliance concerns Binance sells its Russian business to new exchange CommEX amid compliance concerns
Binance sold its Russian subsidiary to an exchange, CommEX, that has existed for just 24 hours.
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Updated: Sep. 27, 2023 at 9:57 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance sold the entirety of its Russia business to a crypto platform, CommEX, for an undisclosed amount. CommEX is a crypto exchange platform launched yesterday, Sept. 26.
In a Sept. 27 statement, Binance said it would begin redirecting some Russian KYC new user registrations to CommEX. According to the exchange, it will sunset all its activities and business lines in Russia over the next several months.
Meanwhile, Binance stated that the off-boarding process could take up to one year as it processes an orderly migration of its users’ assets to CommEX.
Binance declined to provide the financial details of the deal. However, the exchange said it will have no ongoing revenue split from the sale, nor does it maintain any option to buy back shares in the business.
Binance sold its Russian subsidiary due to compliance reasons
Noah Perlman, Binance’s Chief Compliance Officer, said the exchange sold the business because “operating in Russia is not compatible with Binance’s compliance strategy.”
Binance’s operation in Russia has come under heavy criticism as CryptoSlate reported that the exchange continued to process transactions through at least five traditional Russian banks blacklisted by Western powers.
Reports further revealed that U.S. authorities, including the Department of Justice, are investigating Binance concerning possible violations of U.S. sanctions on Russia. According to the report, these investigations played a role in convincing the exchange’s CEO, Changpeng Zhao, to divest the Russian business.
CommEX
CommEX, short for Community Exchange, is a centralized exchange launched on Sept. 26. The platform’s official X handle has only one post announcing its launch.
The exchange’s website provides little to no information about its team. However, it states that an unnamed top-tier crypto venture capital firm backs it.
As of press time, the exchange’s Bitcoin/USDT trading pair had recorded less than $100,000 in trading volume.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.