With Binance’s exit from the Russian cryptocurrency market, Russian clients are moving their trading activities to different platforms.
However, CommEX, the company that acquired Binance’s Russian business, is facing difficulties in attracting these users. This migration has been accompanied by a noticeable decline in peer-to-peer (P2P) trading activity, with a decline ranging from 10% to 30%, according to Satochkin CEO Dmitry Stepanin.
P2P activities decline as traders explore alternatives
Binance’s exit from the Russian market has increased the number of customers looking for alternative platforms for their cryptocurrency trading requirements. CommEX, the company that took over Binance’s operations in the country, was initially expected to attract nearly 1 million customers. However, CommEX is not the preferred choice for many of these customers.
According to Dmitry Stepanin, CEO of Satoshkin, there was something notable It decreases In peer-to-peer (P2P) activities, with numbers falling from 10% to 30%. In early 2023, Binance had around 7,700 daily announcements of P2P ruble transactions. This number fell to 6,300 by mid-year and was down to 3,400 by September. As of October 3, there was no data about ruble transactions on Binance.
Due to the exchange’s active marketing campaigns, Dmitry Stepanin noted that cryptocurrency traders are increasingly using platforms such as ByBit. Other trading platforms such as Huobi, Bitget, Kucoin, and Gate.io, which offer similar features to Binance, have also seen an increase in user activity.
For example, Huobi saw its active ads grow from 3,900 to 4,500 between the first half of the year and October. ByBit, with 1,800 ads in the first half, surpassed 2,700 in October.
Russian cryptocurrency enthusiasts seek refuge in Hong Kong
Due to recent developments, many cryptocurrency enthusiasts from Russia and Ukraine are looking for a refuge for their digital assets in Hong Kong. Merton Lam, founder of CryptoHK, revealed that cryptocurrencies have become a prominent part of the investment portfolios of high-net-worth individuals in the region.
Binance’s departure from Russia can be primarily attributed to pressure from US regulators. The stock exchange faced accusations of money laundering and evading sanctions. Additionally, Binance has implemented several restrictions for Russian users, including restrictions on wallet holdings and currency purchases on their P2P platform.
Sergey Mendeleev, CEO of InDeFi Smart Bank, made it clear that Binance will not exit the market. Instead, they are rebranding to improve operational efficiency in Russia. There are no official documents or references on the company’s website regarding Russian ownership of the CommEX project.
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