CommEX, a crypto exchange that once took over Binance’s operations in Russia, has recently declared its decision to close its operations in the country. The announcement came after Binance’s exit from the Russian market in September 2023, with a projected timeline of one year for the process to be completed. CommEX Russia shared in a post that it will gradually wind down its operations, commencing on March 25. However, the exchange did not provide any specific reasons behind this move.
Starting March 25, CommEX will no longer accept new user registrations, stop asset transfers from Binance, and cease deposits in both fiat and cryptocurrencies. By March 28, there will be a reduction in opening positions for simple futures and futures trading. Additionally, new advertisements on the P2P marketplace will not be published after April 5. All existing P2P orders and advertisements will be automatically closed by April 18, followed by the closure of trading pairs on simple and classic futures by April 23. Finally, the spot market will be closed by May 10, after which the official website will be taken offline, making it inaccessible for users.
CommEX has also informed users that accounts holding remaining assets post-May 10, 2024, will be subject to a 1% asset management fee. Users are advised to close their positions and withdraw assets to external wallets as part of the shutdown process. The exchange’s attempt to take over Binance’s Russian business did not yield successful results, as local clients migrated to other platforms within a month. The peer-to-peer (P2P) trading activity on CommEX witnessed a significant decline of 10% to 30%, indicating a lack of user engagement.
Binance initiated its exit from the Russian market by discontinuing all Russian ruble (RUB) services on January 30, 2024. The closure included open spot orders associated with RUB, as well as the removal of RUB trading pairs from Binance Convert and Binance Pay. The decision to withdraw from Russia was reportedly influenced by pressure from U.S. regulators, who accused the exchange of money laundering and sanctions evasion. Additionally, Binance had imposed several restrictions on Russian users, such as capping holdings at $10,000 and limiting transactions to ruble. Despite these challenges, Binance managed to generate annual revenues ranging from $2 to $4 billion from its Russian user base.
The exit of CommEX from the Russian market, following Binance’s footsteps, sheds light on the challenges faced by crypto exchanges in navigating regulatory landscapes and maintaining user trust. The phased shutdown plan implemented by CommEX reflects the complexities involved in winding down operations while ensuring user compliance and asset protection. As the crypto industry continues to evolve, exchanges must adapt to changing regulatory environments and user preferences to sustain long-term viability and growth.