Despite its announced exit from Russia in 2023, cryptocurrency exchange Binance continues to serve a limited number of Russian clients.
“We continue to serve a limited number of existing Russian users to ensure their digital assets remain safe and secure,” the Binance representative told Cointelegraph, while emphasizing that the company adheres to global sanctions and complies with international regulations.
Binance officially exited the Russian market in September 2023, selling its operations to a new exchange called CommEx. At the time, Binance’s chief compliance officer, Noah Perlman, noted that continuing operations in Russia conflicted with Binance’s regulatory compliance strategy.
However, despite the exit, Binance’s presence in the Russian market remained notable, with its Russian-language Telegram channel continuing to provide updates to its 130,000 subscribers, even after Russian users were informed they could no longer trade on the platform.
CommEx ceases operations
CommEx, the exchange that took over Binance’s Russian users, announced it would shut down operations by April 2024. Though CommEx has denied direct ties to Binance, it acknowledged that some of its team members were former employees of Binance Russia.
The decision to wind down comes after CommEX launched in September 2023, having taken over Binance’s Russian business amid growing scrutiny from the United States over potential violations of war-related sanctions against Russia. This move also followed a broader trend of Russian citizens turning to crypto exchanges due to Western sanctions impacting Russian banks’ access to global payment networks after the invasion of Ukraine.
Although Binance has seen a 43% decline in website traffic from Russia between August 2023 and July 2024, the country remains a significant market for the exchange. Russia accounted for 6% of Binance’s total web traffic during this period, placing it among the platform’s top traffic sources, alongside Turkey and Vietnam.
While Binance has declined to comment on whether its traffic in Russia suggests continued operations, the company reiterated that it is still serving a limited number of existing Russian users and will provide updates on future plans.
Changpeng “CZ” Zhao, the founder and ex-CEO of Binance, denied being the owner of CommEX, which raised questions due to its similarities to Binance in terms of user interface and its recent establishment. However, CZ has refuted any connection between himself and CommEX.
