The world’s largest crypto exchange, Binance, has announced it is exiting the Russian market due to concerns over compliance.
The exchange had been considering its options for some time. The company said it will have no ongoing revenue split from the sale, nor will it maintain an option to buy back shares in the business.
Binance Calls it Quits
According to PR Newswire, Binance has sold its business to CommEX. Noah Perlman, Binance’s Chief Compliance Officer, said:
“As we look toward the future, we recognize that operating in Russia is not compatible with Binance’s compliance strategy. We remain confident in the long-term growth of the Web3 industry around the world and will focus our energy on the 100+ other countries in which we operate.”
Both parties would work together to ensure a smooth off-boarding process for Binance’s customers. While the migration process can last as long as one year, some “know your customer” approved Russian users will be immediately redirected to CommEX.
Read more: 14 Best No KYC Crypto Exchanges in 2023
Binance has assured its users that their assets are safe and secure.
CommEX is a centralized crypto exchange backed by crypto venture capitalists, according to its website. The company only launched its exchange on Tuesday. It has yet to comment on the deal.
The US has issued various sanctions against Russia due to the Russia-Ukraine war. This includes cracking down on payment services to and from Russian banks and individuals.
US regulators believe Russian citizens use crypto exchanges such as Binance to bypass sanctions. Hence, since May 2023, the US Department of Justice (DoJ) has been investigating if Russians are using Binance to evade sanctions.
Read more: 9 Best P2P Crypto Exchanges You Need To Know About in 2023
Amid regulatory challenges, Binance suspended P2P payment support from five sanctioned Russian banks last month. Also in August, a Binance spokesperson first revealed that a complete exit from the country was under consideration.
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