When FTX collapsed, chatter among crypto enthusiasts went into an overdrive that Binance would become the new face of crypto. Less than a year later, the world’s largest crypto exchange is plagued by troubles that continue to mount.
In a move that confirms it is in distress, Binance has reportedly struck an agreement to sell the entirety of its Russia business to CommEX—a crypto exchange that commenced operations just a day ago, on Tuesday. According to a press release, Binance’s decision to pull out of the Russian market was driven by compliance concerns.
“As we look toward the future, we recognise 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,” said Noah Perlman, Binance’s Chief Compliance Officer.
While CommEX officially launched on September 26, it is said to have listed BTC/USDT and ETH/USDT trading pairs for spot trading in July. The crypto exchange took to X (formerly Twitter) to greet its “new users from Russia and around the world!”
Binance has confirmed that the sale would mark the end of its operations in Russia. “Binance will sunset all exchange services and business lines in Russia” in a phased manner over the next several months, the world’s largest crypto exchange said in a statement.
While the financial details of the deal have yet to be disclosed, “Binance will have no ongoing revenue split from the sale, nor does it maintain any option to buy back shares in the business,” as per media reports.
Meanwhile, CommEX said it does not plan to onboard customers from the U.S. and EU, among other jurisdictions, adding that the off-boarding process for Russian users could take up to 12 months. It also assured Russian customers that all their assets are “safe and protected.”
This comes at a time when Binance has been rocked by regulatory troubles around the world. In the US, the crypto exchange is navigating a lawsuit from the Securities and Exchange Commission—for alleged violation of federal securities law. Wall Street’s top cop alleges that Binance and its founder Changpeng Zhao operated an illegal securities exchange and misled investors.
Earlier this month, the regulator urged a D.C. court to order an inspection into BAM Trading Services – the holding company of Binance.US – over its “shaky customer assets.”
And the US is not the only country that has tightened its noose around Binance. Netherlands has imposed a $3 million fine on Binance and ordered the crypto exchange to end its operations. French authorities have also launched a probe into the crypto exchange in connection with money laundering. As the exchange’s battle with the SEX escalates, trading volume on Binance.US is witnessing a significant decline, adding to its woes.
