CommEx, the exchange that took over Binance’s operations in Russia in September 2023, has announced it is closing down and has stopped accepting deposits.

While the exchange has refrained from stating the motives behind this decision, it has outlined that it will wind down all operations before May 10, 2024.

CommEx Announces Suspension of Trading Operations

We regret to inform you that CommEX is winding down its service starting March 25, 2024. All services will be completely terminated by May 10, 2024.

Please close your positions & withdraw assets ASAP.

Learn more https://t.co/1MSZajVjQm pic.twitter.com/y2S4HISFvT

— CommEX (@CommEX_com) March 25, 2024

The announcement was posted on CommEx’s official Telegram group on March 25, informing users of the gradual suspension of operations. They urged users to withdraw their assets to third-party wallets promptly.

“With regret, after a thorough analysis of the current situation and a review of strategic plans, we are forced to announce the decision to suspend the work of the trading platform,” said CommEx

According to the provided timeline, CommEX will cease new user registrations and Asset Transfer from Binance on March 25 and discontinue fiat & cryptocurrency deposit services from April 2. CommEx will halt futures trading on March 28, and all existing peer-to-peer orders and listings will be automatically closed on April 5.

By April 23, the spot trading platform will be completely shut down, with the website set to be suspended by May 10.

Additionally, CommEX stated in the announcement that asset management fees will be imposed for users who still have asset balances on the platform after May 10, 2024. The exchange will charge the account asset management cost 1% of the snapshot assets per day starting May 10, 2024.

CommEX also warned users that it would never contact anyone for withdrawals via phone calls, text messages, or emails; any attempt of such should be flagged as a fraudulent practice. It also warns users not to give their personal account information or verification codes to strangers or third parties.

Binance Sells Russian Business Citing Regulatory Challenges

Last year, Crypto exchange Binance sold the entirety of its Russian business to CommEX as key executives stepped down from the Russian arm of the exchange in September 2023. This all happened when Binance faced major regulatory challenges related to complying with Western sanctions against Russia. However, as of August 2023, despite regulatory pressure, Binance was still promoting its services for Russian users.

Binance later sold its Russian business to CommEx, but details about the deal, including information about CommEx’s founders and executives, remain undisclosed. The exchange officially launched the day before the news was announced. 

Many crypto observers have speculated that CommEX was just a new name for Binance, allowing the exchange to continue operations in Russia without issues with Western sanctions against the country. Skeptics have found significant evidence for such claims, including CommEX hiring prominent former Russia-related executives from Binance.

However, Binance continued to deny the allegations of possible ties between the platform and CommEX. “With this sale, Binance fully exits Russia. We have no plans to get back,” a spokesperson for Binance said.

At the time, Binance said there would be no ongoing revenue split from the sale, and its founder, Changpeng Zhao, denied that he owned the exchange. Also, the similarities between Binance and CommEx websites led some to dub CommEx the “Russian version” of Binance US. At the time of the sale, Russia was a significant market for Binance, accounting for 6.9% of total visits to Binance.com.