Binance Is Withdrawing... But Not Really: Russia Is Still Being Served!

In September 2023, Binance proudly announced the end of its operations in Russia, a market that had become too complex to manage due to international sanctions. A year later, the reality seems more nuanced. Far from having completely turned the page on Russia, Binance continues to offer its services to a “limited number” of Russian users, confirming that the official end does not always mark the practical end. This paradox raises questions about Binance’s real strategy and its compliance management in a tense geopolitical context.

An announced exit… but a contrasting reality

In 2023, Binance made a big splash by declaring that it was withdrawing from the Russian market, even selling its operations to a new platform, CommEx. The goal was clear: to exit an increasingly restrictive environment while scrupulously respecting international sanctions.

Noah Perlman, Binance’s compliance officer, had insisted that operating in Russia had become “incompatible” with the company’s strategy. However, the facts are there: Binance has never completely severed ties.

A Binance spokesperson recently confirmed this to Cointelegraph, explaining that the platform continues to serve a limited number of existing Russian users. This choice is justified by the desire to protect these clients’ digital assets.

In other words, Binance is no longer officially operating in Russia but is still ensuring the security of its users’ funds, creating a legal gray area that intrigues. So, has Binance really left? Or is this a more subtle strategy to maintain a foothold in a crucial market?

CommEx, a temporary solution to replace Binance?

Binance’s exit gave rise to CommEx, a previously unknown platform presented as the new reference for Russian users.

However, CommEx ceased operations in April 2024, leaving users in uncertainty. Despite denials of direct links between CommEx and Binance, it is hard not to see some continuities. Some former employees of Binance Russia joined this new entity, fueling speculation about a possible bridge between the two platforms.

Behind this complex transition, Binance has remained silent on the issue of potentially maintaining hidden services in Russia. Users themselves are torn between confusion and skepticism. Officially, transactions are no longer accessible for Russian citizens.

However, access to certain services, such as the P2P trading platform, remains open for Russians residing abroad, reinforcing the idea of a partial rather than absolute withdrawal.

The shadow of Binance still looms, with Russian subscribers continuing to follow the news on social media, notably through the official Telegram channel. Although the company has physically left the country, its digital presence remains palpable, raising questions about how it manages Russian users while complying with current sanctions.

Is the Russian market still strategic for Binance?

Although Binance has officially left Russia, it has not completely disappeared from the radar of Russian internet users.

According to SimilarWeb, Russia still accounted for 6% of Binance’s total traffic in July 2024, a decline, but still significant. In comparison, key markets like Turkey or Vietnam show similar figures, proving that despite sanctions, Russia remains a significant source of traffic for Binance.

This situation raises a key question: has Binance really left the Russian market or has it simply adapted its strategy to circumvent the difficulties while respecting legal obligations to some extent? By discreetly continuing to serve a handful of users, the platform shows a certain flexibility, even ambiguity in its positioning. Meanwhile, the dollar and the yuan are collapsing.