According to the exchange itself, the shutdown process will take up to one year. All assets of current Russian users are safe and securely protected.
“As we look to the future, we recognize that operating in Russia is not compatible with Binance's compliance strategy,” said Noah Perlman, Chief Compliance Officer.
According to the channel’s editors, the decision may be connected both with the negative situation around Russia and with the deplorable state of the exchange itself. Yes, most of this information cannot be called 100% reliable, but in the crypto industry there is rarely smoke without fire.
Why can the state of the exchange itself be deplorable?
- According to rumors, dozens of top managers quit there in three months.
- About 1,500 employees have been fired from Binance this year.
- According to an insider, the US Department of Justice is conducting a multi-year investigation into the activities of the Binance crypto exchange.
- According to some reports, the exchange may face billions of dollars in fines, and CZ itself may face criminal investigation.
What conclusions arise?
- Do not keep funds on the exchange. Yes, the announcement promises that everything will be carried out smoothly, but if a “bankrun” or some kind of “black swan” starts to happen, you will catch flashbacks from FTX.
- Russia is one of the leading countries in terms of the number of crypto users. In a good scenario, Binance would not have left there, especially given the monopolistic tendencies of the exchange.
- This whole situation can affect Kazakhstan both negatively and positively. Perhaps Russian market participants will try to work with Binance through Kazakhstan and this will become some kind of growth stimulus. However, this may also attract more attention from regulators, both local and foreign. This, in turn, can again lead to a situation similar to the miners, when they say to cut hair, but heads fly