Binance leaves Russia for good: A nod to Washington?

Tormented by tens of thousands of sanctions imposed by the West, Ukraine’s tormentor Russia has no choice but to turn to cryptocurrencies and related technologies. Digital ruble, national digital currency exchange platform, DAO… currently form a bouquet of alternatives to enhance a plunging Russian economy. Except that the United States has no intention of making things easy for Russia, even with cryptos. Washington would not hesitate to put pressure on Binance to cut the bridge between Russians and digital assets. Read on!

Binance Liberates Itself from Russia

Certainly, Binance is a cryptocurrency giant, with hundreds of millions of users worldwide. But it still must comply with regulations related to digital assets. Failure to do so could lead to its closure and inevitable downfall. The ultimate blow from the DOJ is a threat not to be underestimated after unsuccessful attacks by U.S. crypto regulators (SEC and CFTC).

Moreover, Binance is required to adhere to the requirements of Western sanctions regimes imposed on Russia by its departure. Any form of disobedience will result in its downfall, as the U.S. Department of Justice is closely watching this crypto company.

Binance has entered into an agreement to sell the entirety of its Russia business to CommEX (https://t.co/JJRKCo9coA).

To ensure a smooth process for existing Russian users, the off-boarding process will take up to one year. All assets of existing Russian users are safe and…

— Binance (@binance) September 27, 2023

Thus, the pressures from digital asset regulators have had the desired effect on Binance. In a blog post published on its website, the BNB-issuing crypto giant states that it is permanently leaving Russia.

To avoid rushing things, CZ and his team first decided to sell its entire business to CommEX. Then, they announced a “harmonious process” for Russian crypto investors. This includes:

• securing the crypto-assets of Russian users,
• a one-year transition period,
• a thriving Web3 industry that will benefit Russians in the future.

Towards a crypto-less Russia?

Does Binance’s departure mean the end of the crypto adventure for Putin’s Russia? Apparently not. In fact, CommEX, to whom Binance will sell its crypto business, is a centralized cryptocurrency exchange (CEX) committed “to providing accessibility, security and innovation to [its] users worldwide”.

A quick scan of its official website tells us a lot more about the CommEX cryptocurrency exchange. Apparently, this crypto-company will be able to continue serving Russian crypto traders given the breadth of its services. Securing funds, promising a “transparent and user-friendly trading experience”, innovations of all kinds…

By announcing this departure, Binance has simply passed the torch to another CEX capable of satisfying Russia’s crypto needs. Its objective seems quite clear: to avoid tarnishing its image as much as possible while the storm is still raging.

Let’s not forget that crypto giant Binance knows how to come back when it wants to. The example of the temporary suspension of its activities in Belgium demonstrates this ability to serve users while outside the country. Three months after its confrontation with the FSMA, Binance makes a triumphant comeback.

What’s more, Vladimir Putin, who intends to legalize DAOs in the near future, will have no trouble finding another alternative to Binance to stop the hemorrhaging.