Binance Chief Says Former Russia Unit CommEx ‘Does Not Service US or EU Customers’

All of Crypto Twitter has eyes on the most recent deal between Binance and its regional unit CommEx.

As such, Binance CEO Changpeng “CZ” Zhao took to Twitter this morning to offer extra clarification surrounding the trade’s sale of its Russian unit CommEx.

In his message, Zhao addressed the authorized challenges of such a deal, particularly within the context of the continuing sanctions on Russia amid its invasion of Ukraine.

“CommEx doesn’t service US or EU customers,” he wrote. “They’ve IP and KYC blocks. It is a time period we requested for within the deal.”

The Binance chief additionally clarified that he’s not the Final Helpful Proprietor (UBO) of CommEx, which means he did not financially profit from the deal.

He additional acknowledged he holds no shares in CommEx and the settlement lacks buy-back choices.

Moreover, he highlighted that Binance customers migrating to CommEx will witness crypto transfers between the 2 platforms, together with transactions from the testing section.

CZ additionally shared that a number of former Binance staff members from CIS (Commonwealth of Impartial States, consisting of Russia and 11 former Soviet Union republics) would possibly transition to CommEx. “We predict that may be a good factor,” he wrote.

Decrypt has contacted CommEX for remark and can replace this text ought to we obtain a response.

Binance, CommEx deal

Binance introduced on Wednesday the sale of its Russia regional unit and its subsequent withdrawal from the nation.

“Our highest precedence is defending our customers and sustaining belief in our platform,” a Binance spokesperson advised Decrypt. “We now have labored tirelessly to put money into the groups and techniques that guarantee consumer safety. We now have made large investments in compliance expertise, processes, and expertise and proceed to deal with constructing industry-leading international compliance and legislation enforcement help applications.”

Due to this fact, “working in Russia was not suitable with Binance’s new compliance technique.”