Binance Stops Russian Ruble Deposits
Binance halts ruble deposits and withdrawals, exits Russia, and transfers operations to CommEX amidst speculations of ongoing ties.
In a major move, Binance, the renowned cryptocurrency exchange, is set to cease accepting deposits in the Russian ruble effective November 15, 2023. This decision is part of Binance’s broader strategy to gradually withdraw from the Russian market. The company’s recent announcement emphasized the need for Russian users to initiate the withdrawal of their ruble holdings. They have been granted a deadline until January 31, 2024, to complete this process.
This step marks a significant shift in Binance’s operations in Russia, following the sale of its Russian division to CommEX, a new cryptocurrency exchange, in September 2023. Binance’s decision to halt ruble transactions is a continuation of its exit strategy from Russia, underscoring its commitment to comply with global financial norms and regulations.
Transition to CommEX
Binance’s announcement also highlighted the option for users to transfer their funds to CommEX, the entity that recently acquired Binance’s Russian operations. In an effort to ease this transition, Binance has arranged for zero-fee withdrawals of rubles on the CommEX platform. This move is a strategic partnership to facilitate a smooth handover and maintain service continuity for the existing user base.
Additionally, Binance has suggested other alternatives for withdrawing rubles, including the use of its fiat partners. These partners offer services to convert rubles into cryptocurrencies or enable transactions on the Binance Spot Market. However, it is important for users to note that withdrawing rubles through these partners may incur a fee of up to 1%.
Speculations and Denials
The sale of Binance’s Russian division to CommEX has sparked considerable debate and speculation within the cryptocurrency community. Moreover, many industry observers have raised questions about the relationship between Binance and CommEX, with some suggesting that CommEX might be a rebranded version of Binance. This theory proposes that the rebranding is a strategic move to continue operations in Russia amidst Western sanctions.
Evidence supporting these claims points to the recruitment of former Binance executives who had ties with its Russian operations by CommEX. Despite these speculations, Binance has consistently denied any ongoing ties with CommEX. The company maintains that the sale marks its complete exit from the Russian market, with no intentions of re-entering.