Binance, the largest cryptocurrency exchange, has officially announced plans to cease the deposit of Russian rubles on its platform due to the discontinuation of operations in Russia.
On November 11, the crypto exchange Binance announced that it would stop accepting deposits in Russian rubles starting November 15. The exchange also advises users to withdraw their RUB from the platform, as the option for withdrawals in Russian rubles will only remain available on the platform until 9 o’clock on January 31 of the following year.
Binance has made it easier for its users to withdraw Russian rubles (RUB) from their accounts by providing multiple options for withdrawal. Binance users can make their RUB withdrawals using its fiat partners to convert RUB into cryptocurrencies through the “Convert” tool or by exchanging RUB on the Binance Spot Market.
Additionally, users have alternative withdrawal methods, such as utilizing CommEX, a new crypto exchange business that acquired Binance’s Russian division in September 2023.
Also, it’s important to note that RUB withdrawals on CommEX will be free of charge, while withdrawing RUB through Binance’s fiat partners may incur a fee of up to 1%.
New users who have completed their personal data verification procedure with Binance are partially redirected to the CommEX platform. Upon successfully linking the CommEx and Binance accounts, users can freely transfer the RUB on Binance to CommEX.
Previously, Binance terminated its partnership with the Advcash payment system. According to some reports, the reason is that clients transferred funds from sanctioned Russian banks through this gateway.
Binance Sells Russian Branch to CommEX as Part of Exit from the Russia Market
Earlier this year, Binance decided to depart from the Russian market, subsequently initiating the offboarding process for its Russian user base.
As part of this transition, Binance opted to sell its entire Russian branch to CommEX, another cryptocurrency exchange.
The new platform, CommEX, announced its launch the day before the official announcement of Binance. However, the financial details of the deal are undisclosed, as neither firm has gone into details about the deal or how much money was involved in the purchase.
This decision made earlier this year is in line with a recent statement made by Noah Perlman, Binance’s Chief Compliance Officer. Noah Perlman stated that operating in Russia was incompatible with the company’s compliance strategy, resulting in Binance’s exit from Russia in September 2023.
Meanwhile, there has been speculation among the crypto community that CommEX might be a new name for Binance, allowing the exchange to continue its operations in Russia without facing issues related to Western sanctions against the country.
Many have pointed to CommEX hiring Binance Russia’s executives as evidence to support these claims. Despite these allegations, Binance has consistently denied any connections between the platform and CommEX, asserting that the sale marks its full exit from the Russian market.
However, the process of offboarding Russian users is expected to take up to one year. Binance has also reassured its Russian users that their funds are completely safe despite the exit from the Russian market.