Reportedly the majority of the Russian Binance customers do not prefer to go with the CommEx crypto exchange because customers believe other crypto exchanges are the best alternative of Binance exchange.
Binance is a top-level crypto exchange and provides services globally. In some countries, this exchange provides services via subsidiaries. Following some regulatory pressure, Binance wind down its operations from Russia & decided to sell its business to a newly established crypto exchange CommEX.
As per reports, CommEx is failing to attract Binance customers, despite the exchange having Binance’s crypto business model & also some talents from the Binance Russia exchange.
With the initial plan, CommEx aimed to acquire 1 million Russian crypto traders (former Binance customers) but former Binance customers are finding other crypto exchanges better than CommEx. They are using Bybit, Huobi, Bitget, Kucoin, and Gate.io because these exchanges offer services more similar to Binance.
According to Dmitry Stepanin, the CEO of Satoshkin, there has been a notable decrease in peer-to-peer (P2P) activities, with figures plunged from 10% to 30%. In early of this year Binance was conducting nearly 77,00 P2P transactions per day but it dropped to 3,400 by September.
According to experts’ point of view, Binance rivals are taking advantage with the help of high-level promotional stunts. For example, Huobi’s active advertisement surged from 3,900 to 4,500, and Bybit’s active advertisement surged from 1,800 to 2,700.
Some people claim that CommEx is a very new in the crypto market with very limited number of customer and also the liquidity on this platform is low over other existing crypto exchanges, so former Binance customers are not finding CommEx as a better exchange to trade crypto assets frequently.
Binance, America, & legal hurdles
In April 2022, Binance imposed several restrictions against Russian crypto customers but still faced pressure from America. According to some reports, American enforcement agencies claimed that Binance indirectly played a vital role in money laundering activities, which was against Western financial sanction orders for Russia as a part of the Russia vs. Ukraine conflict.
Currently, Binance & its American sister firm BinanceUS are facing huge legal hurdles in the US jurisdiction. The US Securities and Exchange Commission (SEC) and another financial regulator the Commodities Futures Trading Commission (CFTC) sued Binance.