The exit of the Binance exchange from Russia brings with it an important move. Accordingly, it has triggered a significant shift among Russian clients who are actively looking for alternative trading platforms. Let’s look at the details
Great hopes and current challenges of CommEX, which replaced Binance exchange
CommEX, the company that took over the Russian operations of the Binance exchange, initially had high hopes of attracting around one million customers. However, most of these potential customers appear to prefer other platforms over CommEX.
This transition also coincided with a significant decline in peer-to-peer (P2P) trading activity. As reported by Satoshkin CEO Dmitry Stepanin, P2P volumes are down between 10% and 30%. This shows that Binance customers are making different moves.
Dmitry Stepanin’s opinion
Dmitry Stepanin, CEO of Satoshkin, points out the decline in P2P activity. Accordingly, he emphasizes that the numbers have dropped significantly. To provide context, in early 2023 the Binance exchange had around 7,700 rubles of daily P2P trading advertising. This number dropped to 6,300 by mid-year and 3,400 by September. As of October 3, no data on ruble transactions on Binance was available.
There is a reason for this change in trading preferences. It can be attributed to several factors, including CommEX’s inability to effectively capture the Binance user base. Other exchanges such as Huobi, Bitget, Kucoin and Gate.io, which offer similar features to the exchange, attract attention. Accordingly, it has seen increased user activity due to active marketing campaigns.
Growing interest in Hong Kong platforms
In addition to looking for alternative exchanges, a growing number of crypto enthusiasts from Russia and Ukraine are turning to Hong Kong-based platforms as a safe haven for their post-Binance digital assets. Cryptocurrencies have become an important component of the investment portfolios of high-net-worth individuals in the region.
The main reason why the Binance exchange left the Russian market was the pressure from American regulators. The exchange faced accusations of money laundering and sanctions evasion. Binance also imposed various restrictions on Russian users, including wallet holding and currency purchase limits on P2P platforms.
Strategic rebranding evaluation for Binance in Russia
InDeFi Smart Bank CEO Sergei Mendeleev says something different. Accordingly, he explains that the departure of the Binance exchange should not be seen as a complete exit from the market. Instead, Binance is rebranding to improve operational efficiency in Russia.
It should be noted that there is no official document or statement on the company’s website indicating that the CommEX project belongs to Russia.
