CommEx, Successor to Binance in Russia, Announces Shutdown and Halts Deposits in 2024

Illustration of the Google Play Store logo and Binance app icon representing the app's removal in India.

CommEx Announces Suspension of Trading Operations

In a sudden move that has stirred the crypto community, CommEx, the cryptocurrency exchange that succeeded Binance’s operations in Russia, has declared its impending shutdown. The exchange has stopped accepting deposits effective immediately and plans to wind down all operations by May 10, 2024. This announcement was made through CommEx’s official Telegram group on March 25, leaving the crypto industry in speculation about the reasons behind this drastic decision.

Timeline for the Suspension of Services

CommEx has laid out a clear timeline for the cessation of its services. Starting March 25, the platform has ceased new user registrations and asset transfers from Binance. By April 2, the acceptance of fiat and cryptocurrency deposits will be discontinued. Futures trading will stop on March 28, with peer-to-peer orders and listings being automatically closed by April 5. The platform’s spot trading services will completely cease by April 23, leading up to the full suspension of the CommEx website by May 10.

Furthermore, CommEx has warned that asset management fees will be levied on users who have not withdrawn their assets by May 10, 2024. A daily asset management cost of 1% will be charged, urging users to move their assets to third-party wallets promptly.

Binance’s Exit and CommEx’s Launch

The foundation of CommEx was marked by Binance’s strategic retreat from the Russian market, citing the complexities of navigating regulatory waters amidst Western sanctions against Russia. Binance transferred its Russian operations to CommEx in September 2023, amid speculation and concern about the future of crypto trading in the region. Despite Binance’s departure, there have been ongoing discussions about the relationship between Binance and CommEx, fueled by the hiring of former Binance executives by the latter and similarities in their websites.


Implications and Speculations

The closure of CommEx raises several questions about the sustainability and regulatory acceptance of crypto exchanges in Russia. Speculation about CommEx being a facade for Binance to continue its operations in Russia, despite sanctions, has been rife. However, Binance has consistently denied any ongoing ties with CommEx following the sale.

This development also underscores the volatile nature of the cryptocurrency industry, where exchanges must navigate a complex web of international regulations and sanctions. As CommEx prepares to close its doors, the crypto community watches closely, wondering about the future of digital asset trading in Russia and the implications for global cryptocurrency markets.

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