CommEX, the crypto exchange that took over Binance’s operations in Russia, has made the decision to cease its operations in the country. This announcement comes after Binance announced its plans to exit Russia back in September 2023.
CommEX Russia revealed that it will begin winding down its operations gradually, starting from March 25. The exchange will stop accepting new user registrations on this date, as well as halt asset transfers from Binance and cease accepting deposits in both fiat and cryptocurrencies. By March 28, there will be a winding down of opening positions for simple futures and futures trading. The publication of new advertisements on the P2P marketplace will also end by April 5.
All P2P orders and advertisements will be automatically closed by April 18, and all trading pairs on simple and classic futures will be automatically closed by April 23. The spot market will then be closed by May 10, at which point the official website will no longer be accessible to users. Users with remaining assets after May 10, 2024, will be subject to a 1% asset management fee. CommEX is advising users to close their positions and withdraw their assets to external wallets before the cutoff date.
While CommEX has not provided specific reasons for its decision to shut down operations in Russia, it is clear that the exchange has been facing challenges ever since taking over Binance’s Russian business. Local clients quickly switched to other platforms, resulting in a significant decline in peer-to-peer (P2P) trading activity. Binance had already discontinued all Russian ruble (RUB) services on January 30, 2024, as part of its exit from the country.
According to Roman Nekrasov, co-founder of the ENCRY Foundation, Binance’s withdrawal from Russia was largely influenced by pressure from U.S. regulators. The exchange was accused of money laundering and sanctions evasion, leading to various restrictions being imposed on Russian users. Despite these restrictions, Binance reportedly generated annual revenues of $2 – $4 billion from its Russian user base.
The shutdown of CommEX’s operations in Russia marks the end of an era for cryptocurrency exchanges in the country. The decision comes after months of declining user activity and external pressures on the industry. As the exchange prepares to close its doors, users are advised to take necessary steps to protect their assets and transition to alternative platforms in the ever-evolving landscape of cryptocurrency trading.
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