Binance CEO reveals key insights into sale of exchange’s Russian business

Changpeng Zhao, the CEO of Binance, recently shared more details about the company’s withdrawal from the Russian market in a post on the X platform (formerly known as Twitter). According to Zhao’s information, the transfers of cryptocurrencies between Binance and CommEx will be seamless as users make the move. He emphasised that such transfers had already been successfully tested during the exchange’s test phase.

Binance CEO reveals key insights into sale of exchange's Russian business

Furthermore, Zhao mentioned that some former Binance CIS employees may join the new exchange’s team or have already done so, and this step has received his approval. He also highlighted that the CommEx’s architecture and design closely resemble that of Binance. This is a deliberate choice aimed at ensuring a smooth transfer for users.

Zhao clarified that CommEx does not cater to customers from the European Union and the United States. Strict account data verification (KYC) and IP address blocking measures were introduced, a condition that was included in the deal at Binance’s request. Additionally, Zhao made it clear that he is not the ultimate beneficiary, holds no posts, and does not own CommEx’s shares. Furthermore, there are no repurchase options outlined in the terms of the deal.

According to exchange’s technical support, Binance’s decision to sell its business in Russia stems from the incompatibility of working in the country with Binance’s compliance strategy. This move will affect the accounts of Russian citizens and individuals residing within the country’s borders, as well as for legal entities registered in Russia.

However, it’s worth noting that Russian citizens who are legally residing abroad will still have the opportunity to register and use Binance in compliance with the sanction rules. This entails undergoing an extended verification process and confirming their address. Should users attempt to access Binance with a Russian IP address, they will be automatically redirected to the CommEx website.

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