Key Takeaways
- Binance is selling its Russian operations to CommEX, ensuring a year-long, secure transition.
- The company is shifting its focus to global markets, emphasizing compliance.
- Binance’s complete exit from Russia includes no revenue-sharing agreements or buyback options.
In a recent development, Binance has announced an agreement to divest its entire business operations in Russia to CommEX. To ensure a seamless transition for its Russian user base, the off-boarding process is expected to span a period of up to one year, during which all assets belonging to existing Russian users will remain securely protected.
Noah Perlman, Binance’s Chief Compliance Officer, stated,
“Looking ahead, we recognize that maintaining operations in Russia is incongruent with Binance’s compliance strategy. We maintain our confidence in the continued growth of the Web3 industry worldwide and will channel our efforts towards the 100+ other countries where we have a presence.”
Binance Announcement
A well-organized user migration process is on the horizon, with Binance and CommEX collaborating to guide users in transferring their assets to the CommEX platform. A portion of new user registrations from Russia, subject to KYC (Know Your Customer) requirements, will be redirected to CommEX immediately, with a gradual scaling up over time. Over the upcoming months, Binance will gradually phase out all its exchange services and business operations in Russia, with a strong commitment to ensuring a smooth user experience during this transition.
While specific financial terms of the deal have not been disclosed, it is essential to note that Binance’s divestiture from Russia is complete. Distinguishing itself from similar international corporate transactions in Russia, Binance will not retain any ongoing revenue sharing arrangements from this sale, nor will it possess the option to repurchase shares in the business.
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