As Binance leaves the Russian market, cryptocurrency dealers are looking for alternatives, which might affect CommEX’s customer base. There has been a drop in p2p commerce.
There has been a dramatic change among Russian customers as a result of Binance’s [BNB] departure from the Russian cryptocurrency market.
CommEX, the business that just took over Binance’s operations in Russia, is having trouble competing for these customers.
Coincident with this shift has been a sharp drop in P2P (peer-to-peer) commerce. Dmitry Stepanin, CEO of Satoshkin, said that P2P volumes had decreased by 10% to 30%.
When CommEX first acquired Binance’s Russian operations, the company had lofty goals of luring one million customers. But it seems that many of these customers are choosing not to use CommEX and instead going with another platform.
The downturn in P2P activity was highlighted by Dmitry Stepanin, CEO of Satoshkin, who noted a significant drop in numbers. Early in 2023, Binance advertised around 7,700 daily ruble P2P transactions.
By the middle of the year, this figure had plummeted to 6,300, and by September, it had dropped to only 3,400. As of October 3rd, Binance has not recorded any ruble trades.
Several variables are linked to this change in buying habits. One of them is CommEX’s failure to attract Binance’s user base.
In the meanwhile, interest in alternatives to Binance that provide comparable services, such as Huobi, Bitget, Kucoin, and Gate.io, has surged. Their persistent advertising efforts have contributed to their success.
For instance, between January and October, Huobi saw a rise in its number of active adverts from 3,900 to 4,500. The increasing popularity of ByBit among Russian merchants is further shown by the fact that the platform went from 1,800 ads in the first half of the year to 2,700 ads in October.
A rising number of Russian and Ukrainian crypto aficionados are also seeking safety in Hong Kong for their digital possessions.
The creator of CryptoHK, Merton Lam, said that cryptocurrency investments have grown in importance among the region’s ultra-wealthy.
The fundamental reason for Binance’s departure from the Russian market is pressure from American authorities. Money laundering and sanctions evasion were among the charges leveled against the transaction.
Binance also has a number of limitations in place for Russian users. The P2P platform included several restrictions, such as a cap on wallet size or the number of coins that could be purchased.
According to Sergei Mendeleev, CEO of InDeFi Smart Bank, leaving the market is not what Binance is doing. Binance is instead changing its name to improve its efficiency in the Russian market.
There is no indication of Russian ownership of the CommEX project on the business website or in any official documentation.
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