Binance’s Sale of Russian Division to Newly Established CommEX Sparks Concerns

Binance’s Sale of Russian Division to Newly Established CommEX Sparks Concerns

Binance’s History of Regulatory Challenges

This is not the first instance where Binance has faced regulatory pressures and subsequently shifted its operations to seemingly independent entities. In August, Dutch users were informed that they could no longer use Binance, but they were strongly encouraged to switch to a relatively unknown exchange called Coinmerce.

  • Coinmerce has historically acted as a broker for Binance.
  • Similar to the current situation, Binance appeared to maintain a connection with Coinmerce after exiting the Dutch market.

These patterns of behavior raise questions about the degree of independence these new entities truly possess.

Allegations Against Binance

Binance’s exit from the Russian market came after reports of an investigation by the US Department of Justice regarding sanctions violations. The Wall Street Journal (WSJ) also alleged that Binance facilitated significant ruble trade volumes through sanctioned Russian banks, further complicating its legal situation.

In response to these developments, key executives at Binance’s Russian branch resigned, and the exchange announced the sale of its Russian business to CommEX, a new exchange that seemingly appeared out of nowhere.

CommEX’s Connection to Binance and Coinmerce

Many have raised questions about the origins and affiliations of CommEX, with some users pointing out similarities between CommEX and Binance:

  • CommEX, short for Community Exchange, shares a deep sense of community with Binance.
  • Examination of website source code reveals shared traits between CommEX and Binance.
  • API codes used internally by CommEX are identical to those of Binance.

Just as Dutch users were incentivized to switch to Coinmerce, Binance is now encouraging Russian users to join CommEX by offering a generous 25% trading discount for BNB holders on the newly-established exchange. This strategy mirrors previous attempts to maintain regional control through proxy firms.

Furthermore, the terms of service for CommEX closely resemble those of Binance, adding to suspicions that CommEX may be operating under Binance’s influence.

Future Moves and Challenges

These actions by Binance have raised concerns about its approach to regulatory challenges worldwide. The exchange’s recent struggles to find a banking partner in France, where regulators conducted a raid on its European headquarters in Paris, indicate ongoing investigations into alleged money laundering. Binance must now decide whether to find a new partner to continue its operations or potentially replicate its strategy by selling to another emerging exchange in the French market.

Could we soon see the emergence of “CroissantEx” in France?