- Binance reassessed their Russian business ventures amid a tightening regulatory grip.
- The crypto behemoth declares full exit amid a selling agreement with CommEX.
- Binance’s $BNB coin gains 1%, continuing trading in stabilized consolidation.
Leading crypto exchange Binance announced today that it will step out of Russia, as the long-term regulatory perspective in the country doesn’t align with the company’s vision. This comes just weeks after two Russian regional Chief Officers departed Binance.
"As we look toward the future, we recognise that operating in Russia is not compatible with Binance's compliance strategy," explained Noah Perlman, Binance's Chief Compliance Officer.
Penned in Dubai, this statement encompasses a business sell-off deal with CommEX, which will take over all of Binance’s services and products in the Russian market. The announcement promises a smooth transition for users: “In the next several months, Binance will sunset all exchange services and business lines in Russia.”
Russian Chiefs Bow Out
As reported by DailyCoin earlier this month, two chief executives recently resigned from their positions. On September 6th, 2023, the departing executives, regional head Gleb Kostarev and Russia market chief Vladimir Smerkis, announced their departures on LinkedIn.
Kostarev didn’t state why he ended his journey at Binance. Still, he thanked Binance CEO Changpeng “CZ” Zhao and co-founder Yi He for growth opportunities.
Earlier, Binance pulled the plug on five Russian banks in the EU sanctions list on peer-to-peer trading (P2P). According to the latest statement, Binance foresees a one-year timeframe for Russian users’ smooth transition to CommEX, the new company overtaking Binance’s business ventures in the heavily sanctioned state.
On the Flipside
- These rumors surrounding the full-on exit started in late August when the worldwide crypto heavyweight delisted five sanctioned banks.
- These include Sberbank and Tinkoff Bank, the two Russian banks The Wall Street Journal identified as the go-to for money laundering.
- Binance is under the magnifying glass from regulators because of the $428 million money laundering scheme exposed by the WSJ.
- The sanctioned funds were allegedly laundered via Binance’s peer-to-peer service (P2P) as a gateway to avoid the US sanctions.
Why This Matters
Regulatory compliance is a key factor in worldwide crypto adoption.
Read more on crypto policy and regulation:
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