Binance Exits from Russian crypto Market
In the normal scenario, every exchange tries to expand its business in multiple countries and this is how they grow their overall business. This formula is not just limited to cryptocurrency exchanges but also in general it applies everywhere. Every company that is trying to expand its portfolio in different countries for an increase in revenue and overall growth. But sometimes because of the regulatory issues it may be difficult for any company to run its business in certain countries and the same has happened with one of the leading exchanges known as Binance.
This is a leading exchange in the world and I hope many of you will agree that this exchange offers a lot as compared to many other names on the list. I have always seen this exchange expanding its global presence but this is the first time I have seen that the exchange has exited any market. This is not a good sign but as per the statement by the official from the exchange side, this was not possible for them to continue further in the country because of regulatory issues. They have been going through a lot of compliance issues in the country and because of that, they have finally decided to sell its entity to another exchange and exit the market.
Binance, the world’s largest cryptocurrency exchange, is exiting Russia by selling its operations there to a new crypto exchange known as CommEX. “As we look toward the future, we recognize that operating in Russia is not compatible with Binance's compliance strategy,” said Noah Perlman, Binance's chief compliance officer. Binance said Wednesday that "off-boarding" Russian customers would take up to a year. It didn't give financial details of the deal.
It is understood that sometimes it becomes difficult for any company to operate in a certain environment and this is why deciding to leave is better. I do understand that if this exchange had decided to exit the market then there must be a difficult situation and rather than investing their time and money in this tough market it is good to invest in a different country where some growth can be achieved. This is the bear market and it is difficult for many exchanges to survive but at least this exchange is doing well and trying to expand its presence in many more countries which can be a good sign if we ignore the exit news from Russia.
Thanks
Heres a free vote on behalf of @se-witness.
One would expect the benefits of cryptocurrency that have been felt on virtually all sectors to fast-track its adoption, sadly these regulations have been a stumbling block. As a leading exchange, Binance exiting from Russia market is a disappointing development, but could this be an opportunity for other top exchanges who are still operating in the region to further strengthen their customer base with their equally good services?
We don't know if these is a setback or a blessing as more better options might come to play new role in crypto space in both Russian market and the world at large, but the question remains, what better option do we have ? and what could be the rationale behind going for the exchanges ? We desperately need answers as these is not funny any more.
In my opinion, regulations are aimed at protecting citizens from exploitation so I wonder why some exchanges can't comply with them. Binance might be the biggest CEX in terms of userbase and Trading Volume but other exchanges like Bitget have shown trustworthiness and reliability by complying with these regulations changes. The exchange is among the most regulatory compliance CEXs we have.
I agree cos apart from the United States that has been difficult for them to comply with their harsh regulatory policy; the exchange is operating in Canada and UK where Binance and few others have left due to regulatory policy
It's obvious regulatory bodies are trying to slow the adoption rate of crypto thereby elongating the bear market. Binance is a huge market that has a considerable influence on the market and the ongoing exit news is not looking good for the market atm.
I really can’t wrap my head around these recent exits, still recounting on how Bybit decision to walk away from UK traders left us feeling stranded now binance lol . Best to have a diversified portfolio tbh, will just cast my hook on bitget hopefully am satisfied with their services .