In a recent report, CommEx reiterated to the crypto community that the Binance exchange branch in Russia does not belong to Changpeng Zhao, the CEO of Binance International. CommEx claimed it purchased the firm in question about six months ago when Binance was exciting the Russian market.
According to the report, a commotion was reportedly brewing concerning the ownership of the Binance exchange branch in Russia in recent weeks. Many seemed to believe that Changpeng Zhao (CZ), who is the global founder and CEO of Binance, was the owner of the controversial branch. However, CommEX, a prominent crypto exchange in Russia, has publicly claimed ownership of the firm.
In a letter addressed to the public on September 29th, CommEx claimed that contrary to popular opinion, CZ has no connection with Binance Russia. In addition, the letter claimed that Binance sold its Russian branch to CommEx about six months ago, while the new owner kept its UBO private and refused to disclose the individuals who made up the new administrative board.
CommEx Hires Former Binance Executives
According to CommEx’s spokesperson, the firm has a vibrant and efficient team consisting of many crypto enthusiasts from different backgrounds and expertise. Also, he stated that the firm has been developing its newly acquired firm for six months, during which it has hired some ex-members to be part of its core members. He added that the ex-Binance members employed had helped the new administration learn more about the products and services of Binance as well as how it operates.
Through the announcement, CommEx revealed that despite Binance not having any share in the firm, the firm still has some executives who used to represent Binance in the Commonwealth of Independent States. In addition, Binance global CEO Changpeng Zhao commented on the development, stating that some of Binance CIS members have already joined CommEx, which he thought was a good thing.
CommEx Cannot Serve Europe and United States Customers
Furthermore, the report established that some crypto transactions would be executed between the two firms, Binance Russia and CommEx, to initiate users migration. Additionally, Changpeng pointed out that CommEx had already requested to use the APIs, UI/UX designs, and some terminologies used by Binance when they were still the owners of the firm, claiming it would facilitate seamless user experience on the platform.
The Binance CEO highlighted that CommEx would not be able to offer its crypto services and products to investors in Europe and the United States. He said this because the Anti-money laundering and know-your-customer protocols in place in these regions would block users from registering with the exchange. CZ said that they had already agreed with that as part of the deal when CommEx acquired its Russian branch. Also, the reports revealed that CommEx allows users to execute transactions with up to 2 Bitcoins or equivalence of $54,000.
Controversies About Ownership Of Binance Russia
According to the report, some speculators revealed that the reluctance of CommEx to publicly disclose its ownership status of Binance Russia, coupled with the fact that it decided to hire some former workers of Binance fueled the misconception that B8nance was still the underlying owner of Binance Russia. In addition, Adam Cochran, a Cinneamhain Ventures executive, stated that prior to the public announcement of CommEx, he used to believe that CommEx was one of Binance’s shell companies.
However, some crypto enthusiast David Lesperance, who is the founder of Lesperance and Associates, remarked that Adam Cochran’s assertion would not be feasible. He added that if Binance had taken that step and continued to operate under the disguise of CommEx, it would undermine its ultimate decision to exit the Russian market. He added that if this had been the case, Binance’s situation while operating under disguise would be worse than if it had stayed behind in Russia and faced the challenges posed by the country’s regulators.
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