A background check shows that CommEX is a crypto exchange that was officially launched on September 26, although it seemingly listed BTC/USDT and ETH/USDT trading pairs for spot trading in July.
The new platform is designed to provide cryptocurrency trading services including spot, futures and peer-to-peer trading. CommEX is targeting mostly Russian users, as its interface is only available in Russian and English.
Earlier in the year, there were reports that Binance was facing a Department of Justice inquiry as to whether Russian customers were able to access the exchange in violation of United States sanctions related to Russia’s invasion of Ukraine. Following that, the crypto company said it was cutting ties with sanctioned Russian banks in August.
With this new move, Binance would exit the country completely and it will sunset all exchange services and business lines in Russia over the next several months.
Although the explicit financial details of the deal remain undisclosed, the company will have no ongoing revenue split, nor any option to buy back shares, the companies said.
On its X (formerly Twitter) account on Wednesday morning, CommEX welcomed its “new users from Russia and around the world!”
To ensure a smooth process for existing Russian users, Binance said the off-boarding process will take up to one year. It also noted that the assets of existing Russian users are safe and securely protected.
According to its chief compliance officer, Noah Perlman:
“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.”
The announcement emphasized that the crypto exchange will fully exit Russia and will have no ties with the exchange, stating:
“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.”
Binance will ensure to provide its customers with an orderly process for the migration of users. In cooperation with CommEX, it will also inform users how to migrate their assets to the newly created exchange.
The user migration process will allow a portion of Russian users with completed Know Your Customer (KYC) checks to be immediately redirected to CommEX.
“Every effort will be made to maintain a smooth user experience during this transition,” Binance stated in the announcement.
Also, CEO Changpenz Zhao, CZ noted that holders of Binance’s native token, BNB will continue to enjoy a 25% trading discount on CommEX.
Per data, Russia is one of the biggest markets for Binance. Data from SimilarWeb shows that Russia is the top market in terms of user visits for the website Binance.com, accounting for 6.9% of total visits at press time.
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