Cryptocurrency exchange Binance said on Wednesday it would sell its Russian operations to newly formed exchange CommEX, becoming the latest company to pull out of Moscow since Russia began its war in Ukraine.
Binance, the world’s largest cryptocurrency exchange, did not disclose financial details of the deal. The company said it would not receive an ongoing revenue share from the sale and would not retain an option to repurchase shares in the business.
“Going forward, we recognize that doing business in Russia is incompatible with Binance’s compliance strategy,” Chief Compliance Officer Noah Perlman said. He did not mention the war in Ukraine, which Russia has called “Special military operations”.
Binance also stated that all assets of existing Russian users are safe and the user migration process will proceed in an orderly manner. The divestment process will take up to a year, it added.
CommEX is a centralized cryptocurrency exchange backed by cryptocurrency venture capitalists, according to its website. The company just launched the exchange on Tuesday. It did not respond to a request for comment on the Binance transaction.
Many Western companies, including Renault, Shell, McDonald’s and others, have agreed to sell their Russian assets or hand them over to local managers as they move to comply with sanctions over the war in Ukraine and counter threats from the Kremlin. Foreign assets may be seized.
Last month, Mastercard announced that the company and Binance exchange would end four cryptocurrency card projects in Argentina, Brazil, Colombia and Bahrain on September 22. Binance Card allows users to pay in traditional currencies, funded by cryptocurrencies they hold online. exchange.
Binance also faces legal and regulatory challenges. U.S. regulators in June sued the cryptocurrency exchange and its CEO Changpeng Zhao, accusing it of operating a “deceptive network.” Binance said it would “vigorously” defend itself.
© Thomson Reuters 2023
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