Binance is taking down… but not really: Russia was still serving!

In September 2023, Binance proudly announced the end of its activities in Russia, a market that had become too complex to manage in the face of international sanctions. A year later, the reality seems to be more nuanced. Far from ditching the Russian site completely, Binance continues to offer its services to a “limited number” of Russian users, confirming that the official end does not always mean the practical end. This paradox raises questions about Binance’s true strategy and its compliance management in a tense geopolitical context.

Announced release… but contrasting reality

In 2023, Binance made a big splash by announcing that it was withdrawing from the Russian market and even sold its operations to the new CommEx platform. The goal was clear: to escape an increasingly restrictive environment while carefully complying with international sanctions.

Noah Perlman, head of compliance at Binance, insisted that operating in Russia had become “incompatible” with the company’s strategy. But the facts are there: Binance has never cut ties completely.

A Binance spokesperson recently confirmed this to Cointelegraph, explaining that the platform continues to serve a limited number of existing Russian users. This choice is justified by the effort to protect the digital assets of these customers.

In other words, Binance no longer officially operates in Russia, but still takes care of the security of its users’ funds, creating an interesting legal gray area. So is Binance really gone? Or is it a more subtle strategy to maintain a foothold in a key market?

CommEx, an ephemeral solution to replace Binance?

With the departure of Binance, CommEx was born, a previously unknown platform presented as a new benchmark for Russian users.

However, CommEx ceased operations in April 2024, leaving users in limbo. Despite denying direct links between CommEx and Binance, it’s hard not to see some continuities. Some former employees of Binance Russia have joined this new entity, fueling speculation about a possible bridge between the two platforms.

Behind this complex transition, Binance has remained silent on the issue of possible maintenance of hidden services in Russia. Users themselves are torn between confusion and skepticism. Officially, transactions are no longer accessible to Russian citizens.

However, access to certain services, such as a P2P trading platform, remains open to Russians living abroad, reinforcing the idea of ​​a partial rather than absolute withdrawal.

The shadow of Binance is still large, Russian subscribers continue to follow the news on social networks, including the official Telegram channel. Although the company has physically left the country, its digital presence remains palpable, raising questions about how it manages Russian users while respecting current sanctions.

Is the Russian market still strategic for Binance?

Although Binance has officially left Russia, it has not completely disappeared from the radar of Russian Internet users.

According to SimilarWeb, Russia still accounted for 6% of Binance’s total traffic in July 2024, which is certainly a decline, but still significant. In comparison, key markets such as Turkey or Vietnam show similar numbers, proving that despite the sanctions, Russia remains a significant source of traffic for Binance.

This situation raises a key question: Has Binance really left the Russian market, or has it simply adapted its strategy to circumvent the difficulties and to some extent respect the legal obligations? By continuing to discreetly serve a handful of users, the platform exhibits a certain flexibility, even ambiguity, in its positioning. Meanwhile, the dollar and yuan are collapsing.

Evans S.

Fascinated by Bitcoin since 2017, Evariste continued to research the topic. If his first interest was trading, now he is actively trying to understand all the developments focused on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the industry as a whole.

DISCLAIMER OF LIABILITY

The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.