One of the biggest crypto-related stories this week is the sale of the Binance Russian entity to CommEx. Yesterday, Binance boss Changpeng Zhao shed more light on the deal via a long thread on his X account.
Among the things he talked about was the CommEx move to restrict Americans and residents of the European Union countries from using its services. According to the CEO, the trading platform has adopted know-your-customer and IP blocks to prevent them from accessing it.
Moreover, Zhao clarified that he wasn’t CommEx’s UBO (Ultimate Beneficial Owner) like many thought he was. This means he is not entitled to any financial gains from the sale agreement. He added that he does not hold a stake in CommEx, nor is there a buyback clause in the deal.
So, where do employees of the Binance Russian entity stand following the sale? Zhao said in his post that Binance employees from the Commonwealth of Independent States (CIS) will be transitioning to CommEx.
Binance-CommEx Deal
On Wednesday, the largest cryptocurrency exchange, Binance, announced it had withdrawn from Russia after selling its regional entity to CommEx. In its press release, the company’s Chief Compliance Officer, Noah Perlman, stated that it had become difficult to operate in Russia, claiming that the country’s regulatory environment was incompatible with the compliance strategy adopted by Binance.
The crypto exchange started considering selling its Russian subsidiary in August, having removed all sanctioned Russia-based financial institutions as payment options. Other trading platforms that made a similar move include OKX and Bybit.
Binance Regulatory Woes
This is not the first time Binance has exited from a country due to regulatory issues. In July, the exchange withdrew from the Netherlands after being denied a Virtual Asset Service Provider permit by the financial watchdog of the country.
In the US, Binance has been targeted on several occasions by the Securities and Exchange Commission, along with the Commodities Futures Trading Commission. The former recently alleged that Binance was supporting the sale of unlicensed securities, while the latter accused the exchange of running its operations without obtaining a license from the agency.
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