Home Cryptocurrency Binance Chief Says Former Russia Unit CommEx ‘Does Not Service US or EU Users’

Binance Chief Says Former Russia Unit CommEx ‘Does Not Service US or EU Users’

by Harry Garcia

Binance, one of the largest cryptocurrency exchanges in the world, recently made headlines with its deal involving its regional unit in Russia, CommEx. This move has garnered significant attention from the crypto community, with many curious about the details and implications of the sale.

To provide some clarity, Binance CEO Changpeng Zhao, also known as CZ, took to Twitter to address the legal challenges surrounding the deal. Given the ongoing sanctions on Russia due to its invasion of Ukraine, CZ emphasized that CommEx does not cater to users from the US or the European Union. The unit has IP and KYC blocks in place to ensure compliance with these restrictions.

Another important clarification made by CZ is that he is not the Ultimate Beneficial Owner (UBO) of CommEx. This means that he did not financially benefit from the sale of the unit. He also confirmed that he holds no shares in CommEx and that the agreement does not include any buy-back options.

In terms of user experience, CZ mentioned that Binance users who migrate to CommEx will be able to transfer their cryptocurrencies between the two platforms. This includes transactions that occurred during the testing phase of the integration. This seamless transfer of funds aims to ensure a smooth transition for users.

Furthermore, CZ mentioned that some former Binance team members from the Commonwealth of Independent States (CIS), which includes Russia and 11 other former Soviet Union republics, may transition to CommEx. He expressed his support for this development, seeing it as a positive move for the company.

Decrypt, a popular cryptocurrency news outlet, reached out to CommEx for further comment on the deal. Should they receive a response, an update will be provided to shed more light on the situation.

The sale of Binance’s regional unit in Russia and its subsequent withdrawal from the country reflects the exchange’s commitment to user protection and maintaining trust in its platform. Binance has invested heavily in compliance talent, processes, and technology to ensure the highest levels of security and regulatory compliance. However, operating in Russia was deemed incompatible with the exchange’s new compliance strategy, leading to the divestment of its unit.

The Binance-CommEx deal underscores the ever-evolving landscape of the cryptocurrency industry, with companies adapting their strategies to align with regulatory requirements and maintain the integrity of their platforms. As crypto enthusiasts closely monitor these developments, it remains crucial for exchanges to prioritize user protection and comply with regional regulations to foster long-term trust and stability in the industry.

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