CommEX to Cease Operations in Russia
CommEX, the crypto exchange that took over Binance’s operations in Russia, has announced its decision to gradually wind down its operations in the country.
CommEX made the announcement on March 25, revealing that they would be starting the process of winding down their operations in Russia. The exchange did not provide specific reasons behind this decision.
Gradual Wind-Down Process
Here are the key steps involved in the gradual wind-down of operations by CommEX:
- Starting on March 25, the exchange will stop accepting new user registrations
- Asset transfers from Binance will be halted
- Deposits in both fiat and cryptocurrencies will no longer be accepted
By March 28, there will be a winding down of opening positions for simple futures and futures trading. The publication of new advertisements on the P2P marketplace will end by April 5. Subsequently, all P2P orders and advertisements will be automatically closed by April 18.
- Automatic closure of all trading pairs on simple and classic futures by April 23
- The spot market will be closed by May 10
- The official website will cease operations, making it inaccessible to users
CommEX has also informed users that any remaining assets in their accounts after May 10, 2024, will be subject to a 1% asset management fee. Users are advised to close their positions and withdraw assets to external wallets.
Binance’s Regulatory Challenges
Following CommEX taking over Binance’s Russian operations, the exchange faced challenges with local clients:
- Client base shifted to other platforms
- Peer-to-peer (P2P) trading activity decreased by 10% to 30%
As Binance exited the Russian market, it discontinued all Russian ruble (RUB) services on January 30, 2024. This move included closing open spot orders associated with RUB and removing RUB trading pairs from Binance Convert and Binance Pay.
Roman Nekrasov, co-founder of the ENCRY Foundation, highlighted that pressure from U.S. regulators played a significant role in Binance’s decision to withdraw from Russia. Accusations of money laundering and sanctions evasion were among the reasons cited.
- Binance imposed restrictions on Russian users
- Annual revenues of $2 – $4 billion generated from Russian users
Closing Remarks on CommEX’s Decision
The decision by CommEX to cease operations in Russia marks another significant development in the crypto exchange landscape. As regulatory pressures continue to shape the industry, exchanges must navigate complex challenges to maintain operations and compliance.
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