- CommEX to halt new user registrations and asset transfers from Binance.
- Changes will affect the CommEX P2P marketplace.
- The decision comes amid increasing sanctions on Russia.
In a significant development within the cryptocurrency sector, CommEX, the entity that took over Binance’s operations in Russia, has announced its decision to cease all operations by May 10, 2024.
This decision comes after Binance divested its Russian business to CommEX in September of the previous year amid significant regulatory pressures. Despite divesting from Russia, critics still pointed to potential links between Binance and CommEX.
CommEX Shuts Down After Binance Deal
CommEX, the platform that acquired Binance’s operations in Russia, has announced it will cease all operations by May 10, 2024. This decision follows the platform’s phased suspension of services, beginning with the cessation of new user registrations and asset transfers from Binance on March 25, 2024. Additionally, CommEX has stopped accepting fiat and cryptocurrency deposits.
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The company advises users to promptly close positions and withdraw assets to minimize disruptions and secure their holdings. This closure comes less than a year after Binance sold its Russian business to CommEX amid growing compliance concerns, marking a significant shift in the cryptocurrency landscape within Russia.
CommEX Ties to Binance and Regulatory Issues
The transition of Binance’s Russian operations to CommEX was part of Binance’s broader compliance strategy. This strategy aims to realign its global operations amidst increasing geopolitical tensions and regulatory scrutiny. The exit came after Binance became a target of investigations by the US Justice Department into potential violations of war-related sanctions on Moscow.
The transition of Binance’s operations in Russia to CommEX has sparked interest and speculation within the cryptocurrency community about the ties between the two exchanges. For instance, some users pointed out that parts of the CommEX site appeared almost identical to Binance’s, with only minor adjustments like logo and color scheme changes.
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This has led to speculation among the crypto community, with some suggesting that the similarity in website design indicates a deeper linkage between CommEX and Binance, possibly even involving shared operational or technological resources.
Further fueling these speculations, Binance CEO Changpeng Zhao (CZ) acknowledged that some former Binance team members may have joined CommEX or have already joined. However, CZ stressed that the Binance has no direct ties to CommEX. He also claimed that there would be no ongoing revenue split from the sale, nor will it retain any buyback options.
On the Flipside
- The details of the Binance-CommEX deal were not disclosed to the public.
- Earlier, Binance came under fire for its Russian operations. Notably, the exchange facilitated P2P transfers without KYC requirements.
Why This Matters
The evolving regulatory landscape globally presents significant challenges for cryptocurrency exchanges. The Binance-CommEX scenario illustrates the complexities of operating across different jurisdictions, especially when sanctions are involved.
Read more about Binance-CommEX ties:
Did Binance Really Leave Russia? CZ Denies Owning CommEx
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