Cryptocurrency exchange Binance still serves some Russian clients despite announcing a complete exit from Russia in 2023.
“We continue to serve a limited number of existing Russian users to ensure their digital assets remain safe and secure,” a spokesperson for Binance told Cointelegraph on Sept. 25.
The Binance representative emphasized that the crypto exchange “adheres to global sanction regulation” and “fully complies with restrictions on individuals, entities and countries subject to international sanctions.”
Operating in Russia was “not compatible with Binance’s compliance strategy”
The announcement marks one year since Binance completed its full exit from the Russian market by selling its local operations to a new exchange called CommEx. In the statement released on Sept. 27, 2023, the companies did not reveal the deal’s financial details.
At the time, Binance’s chief compliance officer, Noah Perlman, claimed there was no way for the firm to stay in Russia while ensuring regulatory compliance. He stated:
“As we look toward the future, we recognize that operating in Russia is not compatible with Binance’s compliance strategy.”
In a fresh statement to Cointelegraph, Binance reiterated that compliance “remains its highest priority,” and its goal is to establish “industry-leading compliance programs that cooperate effectively with law enforcement worldwide.”
CommEx shut down operations in April 2024
A few months after transitioning Binance’s Russian users to its platform, CommEx officially announced that it would shut down operations entirely by April 2024.
The exchange, previously unknown before Binance’s exit from Russia, has never revealed any details about its founders or key executives. Although CommEx denied any direct connection with Binance, it acknowledged that its team included some former employees of Binance Russia.
While Binance claimed to terminate its Russian business last year, its Russian community has remained vibrant on social media since it announced its exit.
Binance’s Russian-language news channel on Telegram has around 130,000 subscribers. It has continued sharing updates about new token listings on Binance Launchpool despite informing its Russian users that they can no longer trade on the platform.
The latest post from Binance’s Russian-language channel on Telegram posted on Sept. 26. Source: Telegram
“Access to Binance P2P for citizens of the Russian Federation who reside outside the Russian Federation and who have confirmed this via proof of address will remain unchanged,” the channel said in a post in January 2024.
Russia a major market on Binance over the past year
Since Binance announced its exit from Russia, its local website visits have seen a significant decline.
According to data shared by the web analytics platform SimilarWeb, Binance’s website traffic in Russia dropped 43% from August 2023 to July 2024.
Despite a notable decline, Russia remained one of the biggest traffic sources for Binance’s website, accounting for 6% of its total visits.
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Russia’s traffic share is comparable with other major markets on Binance, including Turkey and Vietnam, which account for 8% and 6.6% of its total traffic, respectively.
Top 10 countries by visitors to Binance’s website from August 2023 to July 2024. Source: SimilarWeb
Binance declined to tell Cointelegraph whether its significant traffic share in Russia or certain services to Russian users mean it has continued operating in the market. The company’s spokesperson stated:
“It only means that we continue to serve a limited number of existing Russian users. And we will inform the community of future plans.”
The news comes after Binance CEO Richard Teng announced that the exchange surpassed $100 trillion in all-time trade volume in September.
Binance’s former CEO and founder, Changpeng Zhao, is expected to be released from prison in the United States on Sept. 29.
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