CommEX Struggles to Attract Russian Clients Amid Binance Exit: Report

As Binance exits the Russian cryptocurrency market, Russian clients are transitioning their trading activities to different platforms.

However, CommEX, the company that acquired Binance’s Russian business, is encountering difficulties attracting these users. This migration has been accompanied by a notable drop in peer-to-peer (P2P) trading activity, with a decline ranging from 10% to 30%, according to Satoshkin CEO Dmitry Stepanin.

P2P Activities Decline as Traders Explore Alternatives

Binance’s exit from the Russian market has sparked a surge in clients seeking alternative platforms for their cryptocurrency trading requirements. CommEX, the company that assumed Binance’s operations in the country, was initially projected to attract approximately one million clients. However, CommEX is not the preferred choice for many of these clients.

According to Dmitry Stepanin, the CEO of Satoshkin, there has been a notable decrease in peer-to-peer (P2P) activities, with figures falling from 10% to 30%. In early 2023, Binance had around 7,700 daily ruble P2P transaction ads. This number decreased to 6,300 by mid-year and dropped to 3,400 by September. As of Oct. 3, there was no data on ruble transactions on Binance.

Due to the exchange’s active marketing campaigns, Dmitry Stepanin observed that crypto traders are increasingly using platforms like ByBit. Other exchanges like Huobi, Bitget, Kucoin, and Gate.io, which offer similar features to Binance, have also seen increased user activity.

Huobi, for example, saw its active advertisements grow from 3,900 to 4,500 between the first half of the year and October. ByBit, with 1,800 advertisements in the first half, exceeded 2,700 in October.

Russian Crypto Enthusiasts Seek Refuge in Hong Kong

Given recent developments, many crypto enthusiasts from Russia and Ukraine seek refuge for their digital assets in Hong Kong. Merton Lam, the founder of CryptoHK, reveals that crypto has become a notable part of the region’s high-net-worth individuals’ investment portfolios.

Binance’s departure from Russia can be primarily attributed to pressure from American regulators. The exchange has faced accusations of money laundering and sanctions evasion. Additionally, Binance had implemented several restrictions on Russian users, including limits on wallet holdings and currency purchases on their P2P platform.

Sergei Mendeleev, CEO of InDeFi Smart Bank, clarified that Binance is not exiting the market. Instead, they are rebranding to improve operational efficiency in Russia. There are no official documents or mentions on the company’s website regarding Russian ownership of the CommEX project.