CommEX Says They Are Not Owned by Binance, However Some Core Members Are Ex-Binance Veterans

CommEx, the agency that has lately acquired Binance’s Russian division, has stated that it isn’t owned by Binance however disclosed that a few of its core members are the change’s earlier staff. 

In a Friday open letter, CommEx claimed it’s an impartial entity separate from Binance regardless of refraining from disclosing its final useful proprietor (UBO).

“Though we don’t disclose our UBO, we need to make it clear that we’re not owned by Binance,” the letter reads. 

“We’re a vibrant and environment friendly start-up crew, made up of dozens of passionate people from numerous backgrounds. A few of our core members are former Binance veterans who convey invaluable crypto and web expertise expertise.”

CommEx revealed that it has been diligently growing its platform for the previous six months and has onboarded ex-Binance staff throughout this era. 

This has facilitated oblique connections and data change between the 2 entities, although Binance has no possession stake in CommEx.

CommEx Incorporates Binance’s Design

Along with hiring ex-Binance personnel, CommEx has integrated sure components akin to design, utility programming interfaces (APIs), and phrases of use from Binance.

“Though our present product could also be fundamental, shifting ahead, our tech and product groups will do their greatest to offer the perfect consumer expertise out there,” the change stated. 

Binance CEO Changpeng Zhao had beforehand confirmed this and emphasised that CommEx doesn’t serve customers from the USA and Europe, as agreed upon within the deal.

“Their design, APIs, and so forth are just like Binance. We requested for this to make sure a easy consumer expertise,” CZ stated in a Thursday submit on X. 

Nevertheless, the absence of details about CommEx’s house owners, coupled with the presence of ex-Binance staff and similarities in web site design and APIs, has sparked hypothesis about Binance’s hidden possession of the corporate. 

Enterprise capital agency Cinneamhain Ventures’ associate, Adam Cochran, has even claimed that CommEx is perhaps “simply one other shell firm by Binance.” 

Binance Loses Market Share Amid Regulatory Stress

As reported, Binance has seen a pointy drop in market share amongst non-dollar crypto exchanges.

The change’s market share amongst a bunch of exchanges that features main Asian gamers like Upbit, Huobi, Bybit, and OKX hit 54% in August and is projected to additional drop to underneath 51% in September.

This comes because the platform had a 75% market share amongst these exchanges on the finish of 2022. 

Binance’s declining market share is essentially attributed to the rising regulatory strain. 

In June, the SEC sued Binance and its CEO for his or her “blatant disregard of the federal securities legal guidelines,” unveiling 13 prices in opposition to the platform, together with working an unregistered change.

The change has additionally confronted regulatory challenges in a number of European international locations, akin to Belgium and Austria, because it prepares to adjust to the EU’s forthcoming Markets in Crypto Property (MiCA) laws.

Extra lately, Paysafe, Binance’s European funds associate, has ended support for the change’s prospects.