- Binance begins its exit process from Russia, citing compliance concerns.
- The crypto exchange announced the complete sale of its Russian platform to CommEX, a newly launched crypto exchange.
Binance Exits Russia
The globally-acclaimed cryptocurrency exchange is leaving Russia due to compliance concerns.
In a statement released today, Binance announced the sale of its Russia branch to CommEX, a crypto exchange launched on Tuesday.
Binance revealed its plan to focus on its platforms in other countries.
“As we look toward the future, we recognize that operating in Russia is not compatible with Binance’s compliance strategy. We remain confident in the long-term growth of the Web3 industry around the world and will focus our energy on the 100+ other countries in which we operate,” Binance revealed in a statement.
The crypto exchange also revealed that the off-boarding process will continue for a year to provide a smooth transition process for its Russian users.
Binance and CommEX will carry out the migration process to ensure orderliness.
Users who completed their KYC registration recently will be onboarded to CommEX immediately.
Binance assured that the exit process would be completed over the next few months. Although the crypto exchange did not disclose the sale details, it reiterated that the company has exited Russia.
“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 statement reads.
Binance Leaves Russia Amid Allegations of Violating Sanctions
Following the war with Ukraine, Binance has been on the edge of exiting Russia, especially with the legal sanctions imposed on the country.
The European Union, The United States, and other countries have leveled multiple sanctions against Russia after it invaded Ukraine. The legal sanctions are often targeted at Russian banks and wealthy citizens, restricting financial access.
In 2022, Binance complied with international legal sanctions imposed by the European Union on Russia by taking restrictive measures. The crypto exchange restricted trading access to Russian institutions and users with more than $10,900 in their Binance accounts.
Last month, Binance, alongside OKX and ByBit, delisted two banks from its platform in compliance with U.S. sanctions on Russia.
Wall Street Journal recently reported that the crypto exchange enabled ruble trading in large volumes with sanctioned Russian banks.
In addition to the long list of legal challenges Binance was entangled with through its Russian platform, a United States Senator, Elizabeth Warren, implored the Justice Department to investigate Binance over violation of legal sanctions.
“I rang the alarm about sanctions evasion by Russia using the crypto platform Binance—and urged @TheJusticeDept to investigate potentially false statements it made to Congress. We need stronger crypto regulations to rein in illicit finance,” she said in a post published on X, formerly Twitter.
Despite the violation of sanction allegations, media outlets reported that Binance complied with the imposed sanctions by blocking Russian users from exchanging cryptocurrencies other than rubles in its peer-to-peer trading services.