Binance, one of the world's largest cryptocurrency exchanges, has announced the sale of its Russian business operations. An agreement has been reached with CommEX, and the transfer of client assets to CommEX is part of this transaction. Interestingly, the CommEX cryptocurrency exchange, where the assets of Binance users will be transferred, was launched less than 24 hours ago.
Existing Binance users with accounts will be assured a smooth migration process, which will take up to one year. Binance emphasizes that all assets of its current Russian users will remain safe and secure.
According to Noah Perlman, Chief Compliance Officer at Binance, as the company looked to the future, they understood that operating in Russia was not compatible with Binance's compliance strategy. Yet they remained confident in the long-term growth of the web3 industry around the world and were going to focus our efforts on the more than 100 other countries in which they operated.
Binance and CommEX plan to work together to inform users about the procedure for transferring their assets to CommEX. Some new users who successfully complete the KYC procedure ("know your customer") in Russia will be automatically redirected to CommEX, and this practice will expand over time. Over the next few months, Binance will cease all its exchange services and business operations in Russia, taking all necessary measures to ensure an uninterrupted user experience during the transition period.
This marks the complete cessation of Binance's activities in Russia. Financial details of the deal were not disclosed, and unlike some similar deals between international companies and Russia, Binance will not receive a percentage of the proceeds from the sale and will not have the opportunity to repurchase the business in the future.