CommEX Struggles to Attract Russian Clients Amid Binance Exit: Report. P2P activities diminish as traders look at alternatives to Binance, with a significant drop in numbers from 10% to 30%.
Russian clients are moving their trade to new platforms as Binance departs the country’s cryptocurrency industry.
CommEX, the company that bought Binance’s Russian operation, is having trouble luring these users. According to Satoshkin CEO Dmitry Stepanin, this shift has been followed by a noticeable fall in peer-to-peer (P2P) trading activity, with a decline ranging from 10% to 30%.
P2P Activities Decline as Traders Explore Alternatives
Due to Binance’s withdrawal from the Russian market, an increase in customers looking for other platforms has been observed. It was once anticipated that CommEX, the business that took over Binance’s operations in the nation, would draw up to one million customers. For many of these clients, CommEX is not the first choice.
The CEO of Satoshkin, Dmitry Stepanin, claims that peer-to-peer (P2P) activity has significantly decreased, with figures decreasing from 10% to 30%. Early in 2023, Binance had over 7,700 daily P2P transaction adverts in rubles. By the middle of the year, it had reduced to 6,300; by September, it had fallen to 3,400. On Binance, there was no information on transactions in rubles as of October 3.
Dmitry Stepanin saw the exchange’s vigorous marketing initiatives, revealing that crypto traders increasingly use platforms like ByBit. Other businesses like Huobi, Bitget, Kucoin, and Gate.io, which offer similar features to Binance, have also seen increased user activity.
For instance, the number of active adverts on Huobi increased from 3,900 to 4,500 between the first half of the year and October. With 1,800 ads in the first half, ByBit surpassed 2,700 in October.
Russian Crypto Enthusiasts Seek Refuge in Hong Kong
Given recent events, many Russian and Ukrainian crypto aficionados seek safety in Hong Kong for their digital assets. Cryptocurrency has grown to be a significant component of the financial portfolios of the region’s high-net-worth individuals, according to Merton Lam, the creator of CryptoHK.
The leading cause of Binance’s exit from Russia is pressure from American regulators. The exchange has been accused of avoiding sanctions and money laundering. Binance had also imposed several limitations on users from Russia, including caps on wallet holdings and currency purchases on their P2P network.
InDeFi Smart Bank CEO Sergei Mendeleev stated that Binance is not leaving the market. Instead, they are changing their brand to increase operational effectiveness in Russia. Russian ownership does not appear in official records or statements on the company’s website.