Binance’s Exit from Russia
Binance initially left the Russian market a year ago by selling its local operations to a new exchange called CommEx. This decision was part of Binance’s broader compliance strategy. The company’s chief compliance officer, Noah Perlman, explained that maintaining operations in Russia was not compatible with Binance’s efforts to ensure regulatory compliance worldwide.
In a statement released in September 2023, Binance reiterated that compliance was a top priority for the company. Their goal is to build industry-leading compliance programs that work closely with law enforcement globally. Even after selling its Russian operations, Binance maintained a small user base in Russia, which they say is in line with their compliance standards.
CommEx Shutting Down
CommEx, the exchange that took over Binance’s Russian business, did not last long. A few months after absorbing Binance’s Russian users, CommEx announced that it would be shutting down its operations entirely by April 2024. This decision left some Russian users in limbo, although many had already transitioned to other platforms or continued using Binance’s services.
CommEx, which was largely unknown before Binance’s exit, has not disclosed any details about its leadership or founders. However, it acknowledged that its team included former employees of Binance Russia. Despite CommEx’s closure, the Russian crypto community remained active on social media. Binance’s Russian-language news channel on Telegram, for example, continued to engage users by posting updates on token listings and other developments.
Binance’s Presence in Russia
Although Binance claims to have exited Russia, its presence in the market is still significant. The exchange’s website has seen a decrease in traffic from Russia since its departure, with a 43% drop in visits between August 2023 and July 2024.
However, Russia remains one of Binance’s largest sources of traffic. According to SimilarWeb, 6% of Binance’s global website traffic comes from Russia. For comparison, Turkey accounts for 8% of the exchange’s traffic, while Vietnam accounts for 6.6%.
Traffic Sources for Binance (August 2023 – July 2024)
|
Country |
Percentage of Total Traffic |
|
Turkey |
8% |
|
Vietnam |
6.6% |
|
Russia |
6% |
Despite the high traffic, Binance has been tight-lipped about whether it is still operating in Russia. They have not clarified if the ongoing traffic and services offered to Russian users suggest that they are still active in the country. However, it is clear that Russia has remained an important market for the exchange even after its official exit.
Binance’s Global Achievements
Despite the challenges in Russia, Binance continues to achieve significant milestones globally. In September 2024, the company’s CEO, Richard Teng, announced that Binance had surpassed $100 trillion in all-time trading volume. This achievement highlights the exchange’s dominance in the global crypto market, even as it navigates regulatory challenges in different regions.
As for Binance’s founder and former CEO, Changpeng Zhao, he is expected to be released from prison in the United States on September 29, 2024. Zhao’s legal troubles have been a significant point of discussion in the crypto community, but they have not affected Binance’s ongoing operations.
In conclusion, Binance’s relationship with Russia is complex. While the exchange officially left the market, it continues to serve some users and remains a major player in the region. This raises questions about how Binance balances its compliance efforts with the demand for its services in markets like Russia.