Tormented by tens of thousands of sanctions imposed by the West, Russia, the executioner of Ukraine, has no choice but to turn to cryptocurrencies and related technologies. Digital ruble, national digital currency exchange platform, DAO… currently form a bouquet of alternatives to enhance a Russian economy in full decline. Except that the United States has no intention of making things easier for it, even with cryptos. Washington would not hesitate to put pressure on Binance to cut the bridge between Russians and digital assets. Details !
Binance frees itself from Russia
Certainly, Binance is a cryptocurrency giant, with its hundreds of millions of users spread around the world. But he must still respect the regulations in force relating to digital assets. Otherwise, it will have to close its doors and inevitably witness its downfall. The DOJ’s final blow being a threat that should not be minimized after the unsuccessful attacks by American crypto regulators (SEC and CFTC).
Also, Binance is required to comply with the requirements of Western sanctions regimes imposed on Russia by its departure. Any form of insubordination will lead to its downfall since American justice has its eyes fixed on this crypto-company.
“ Binance has reached an agreement for sell its entire Russian operations to CommEX (https://commex.com).
To ensure a smooth process for existing Russian users, the onboarding process will take up to a year. All the Assets of existing Russian users are safe and protected.
Looking to the future, we recognize that operating in Russia is not not compatible with compliance strategy from Binance. We remain very confident in the long-term growth of the web3 industry worldwide and will focus our energy on the hundred more countries we hope to expand into. »
Thus, pressures from digital asset regulators have produced the expected effects on Binance. In a blog post published on its site, the crypto giant issuing BNB claims that it is leaving Russia permanently.
To avoid rushing things, CZ and his team first decided to sell his entire business to CommEX. Then they announce Russian crypto investors a “ harmonious process “. It includes in particular:
- there securing crypto-assets Russian users;
- a period of one year transition ;
- and a thriving Web3 industry that could benefit the Russians later.
Towards a Russia without crypto?
The departure of Binance would mean a end of crypto adventure for Russia of Putin? Apparently not. In fact, CommEX to whom Binance will sell its crypto activities is a centralized exchange (CEX) of cryptocurrencies committed “ to provide accessibility, security and innovation to [ses] users worldwide “.
A brief overview of its official website allowed us to learn a lot more about the CommEX cryptocurrency exchange. Apparently, this crypto-company will be able to continue serving Russian crypto traders given the scope of its services. Securing funds, promise of “ transparent and user-friendly trading experience », innovations of all kinds…
By announcing this departure, Binance has only passed the torch to another CEX capable of satisfying Russia’s crypto needs. Its objective seems very clear: to avoid tarnishing its image as much as possible while the storm is there.
Let’s not forget that crypto giant Binance knows how to come back whenever it wants. The example of the temporary suspension of its activities in Belgium demonstrates this ability to serve users while being outside the country. Three months after its confrontation with the FSMA, Binance makes a triumphant return.
Furthermore, Vladimir Putin, who plans to soon legalize DAOs, will have no trouble finding another alternative to Binance to stop the bleeding.
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