Binance Ceases Operations in Russia, Prioritizing Expansion to Over 100 Countries

Binance’s Exit from Russia

Cryptocurrency exchange Binance has announced its full exit from Russia. The company has entered into an agreement to sell its Russia business to Commex, a centralized cryptocurrency exchange backed by top-tier crypto VC.

To ensure a smooth process for existing Russian users, Binance will off-board them over the course of a year. The financial details of the deal have not been disclosed. Binance clarified that it will not receive any ongoing revenue split or maintain any option to buy back shares in the business.

Binance CEO Changpeng Zhao (CZ) clarified that Commex does not serve U.S. or EU users and has IP and KYC blocks in place as requested by Binance. He emphasized that he is not the ultimate beneficial owner of Commex and does not own any shares in the company.

Russia Not Compatible with Compliance Strategy

Binance’s Chief Compliance Officer, Noah Perlman, stated that operating in Russia is not compatible with the company’s compliance strategy. However, Binance remains confident in the long-term growth of the Web3 industry globally and will focus on the other 100+ countries where it operates.

Binance will redirect a portion of new user registrations in Russia to Commex, gradually scaling up over time. Over the next few months, Binance will phase out all exchange services and business lines in Russia.

Hot Take: Binance Shifts Focus Away from Russia

Binance’s decision to fully exit Russia reflects its commitment to complying with regulations and aligning its operations with its compliance strategy. By selling its Russia business to Commex, Binance ensures a smooth transition for its existing Russian users while redirecting new user registrations to a trusted partner.

As one of the leading cryptocurrency exchanges globally, Binance remains optimistic about the long-term growth of the Web3 industry. With a presence in over 100 countries, the company will concentrate its efforts on expanding and serving users in markets where it can operate in line with its compliance framework.