All Eyes on Binance’s Deal with CommEx
Binance CEO Changpeng “CZ” Zhao recently took to Twitter to provide clarification regarding the sale of its Russian unit, CommEx. Addressing the legal challenges of the deal in light of ongoing sanctions on Russia, CZ emphasized that CommEx does not cater to US or EU users and has IP and KYC blocks in place as per Binance’s request. He also made it clear that he is not the Ultimate Beneficial Owner (UBO) of CommEx, meaning he does not financially benefit from the deal and holds no shares in the company.
Furthermore, CZ highlighted that Binance users migrating to CommEx will experience crypto transfers between the platforms, including transactions from the testing phase. He also mentioned that some former Binance team members from the Commonwealth of Independent States (CIS) may join CommEx.
Decrypt has reached out to CommEx for comment and will update accordingly.
Binance’s Decision to Sell its Russia Regional Unit
Binance announced its sale of the Russia regional unit and subsequent withdrawal from the country, citing user protection and trust as their highest priority. The exchange has made significant investments in compliance talent, processes, and technology to ensure user safety and continues to focus on building industry-leading compliance and law enforcement assistance programs globally. Operating in Russia was deemed incompatible with Binance’s new compliance strategy.
Hot Take: Binance’s Strategic Move
Binance’s decision to sell its Russian unit and exit the country highlights their commitment to user protection and compliance. By withdrawing from a jurisdiction where it cannot fully enforce regulatory requirements, Binance aims to maintain trust in its platform. The clarification provided by CZ regarding the deal with CommEx addresses legal challenges and emphasizes the lack of financial benefit he personally gains from it. This move also paves the way for Binance users to seamlessly migrate to CommEx, ensuring a smooth transition between platforms. Overall, this strategic decision showcases Binance’s dedication to operating within regulatory frameworks while prioritizing user safety.
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