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CommEx, successor to Binance in Russia, announces closure and halts deposits

This action could affect users of the platform and the cryptocurrency market in Russia, creating uncertainty and prompting the search for alternative trading solutions.

Date: 2024-03-26 Author: Marek Stiller
CommEx, successor to Binance in Russia, announces closure and halts deposits

CommEx, the exchange that took over Binance ‘s Russian operations in September 2023, has announced that it will close and stop accepting deposits. It refrains from giving reasons for the decision, but said it will end all operations before May 10, 2024.

CommEx announces suspension of commercial operations

An announcement informing users of the gradual suspension of operations was posted on Telegram on the official CommEx group on March 25. It urged users to withdraw all their assets from third-party wallets within 24 hours.

CommEx reported: “With regret, after a thorough analysis of the current situation and a review of strategic plans, we are forced to announce the decision to suspend the operation of the trading platform.”

According to the schedule, CommEX will stop accepting new users and transferring assets from Binance on March 25. It will also cease fiat deposit and cryptocurrency services from April 2. on March 28, CommEx will stop trading futures contracts. on April 5, all current peer-to-peer orders and auctions will be automatically closed.

The spot trading platform will be completely shut down by April 23, and the website will be closed by May 10.

In addition, CommEX said in an announcement that asset management fees will be imposed on users who continue to have an asset balance on the platform after May 10, 2024. Starting May 10, the exchange will charge an account asset management cost of 1% of snapshot assets per day.

CommEX has also warned users that it will never contact anyone about withdrawals via phone calls, text messages or emails; any such attempts should be labeled as fraudulent practices. It also warns users not to share their personal account information or verification codes with strangers or third parties.

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Binance sells Russian business citing regulatory challenges

Last year, cryptocurrency exchange Binance sold its entire Russian business to CommEX when key executives left the exchange’s Russian arm in September 2023. All of this came as Binance faced serious regulatory challenges in complying with Western sanctions against Russia. However, as of August 2023, despite regulatory pressure, Binance continued to promote its services to Russian users.

Binance later sold its Russian business to CommEx, but details of the transaction, including information about CommEx’s founders and management, remain undisclosed. The exchange officially launched the day before this news was announced.

Many cryptocurrency observers speculate that CommEX is simply a new name for Binance, allowing the exchange to continue operating in Russia without the problems of Western sanctions against the country. Skeptics have found substantial evidence to support such claims, including CommEX’s hiring of prominent former executives with Russian ties to Binance.

However, the exchange continued to deny allegations of possible ties between the platform and CommEX. “With this sale, Binance is leaving Russia completely. We have no plans to return,” a Binance spokesman said.

They stated at the time that there would be no permanent revenue sharing from the sale, and the exchange’s founder, Changpeng Zhao, denied owning CommEx. Moreover, the similarities between the Binance and CommEx sites led some to call CommEx a “Russian version” of Binance US. At the time of the sale, Russia was a significant market for Binance, accounting for 6.9% of all visits to Binance.com.

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Marek Stiller
Marek Stiller
Founder of the "Cryptocurrency for Beginners" channel on YouTube. He collaborates with Łukasz to form the Arena Trading group, while at the same time being passionate about blockchain technology. His knowledge and experience in the cryptocurrency industry help beginner investors better understand this dynamic market.
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