Binance, the world’s largest cryptocurrency exchange, announced that it will exit the Russian market by selling its business to rival exchange CommEx.
According to a blog post, the leading crypto exchange has agreed with CommEx to ensure a smooth off-boarding process for Russian users, which is expected to take up to a year.
Binance to Sell Russian Business
Binance noted that migrating users’ assets would be orderly as it would partner with CommEx to inform affected parties of the process. It will also allow users with completed know-your-customer registration processes to be redirected to CommEx, which was just launched on September 26.
The crypto trading platform did not disclose the financial details of the deal but revealed that the sale of its business would result in a complete exit from the Russian market. Binance will have no ongoing revenue split from the sale and will maintain no option to buy back shares in the business.
Binance will shut down all Russian exchange services and business lines in the next few months while ensuring a smooth user migration process.
“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,” said Noah Perlman, Binance’s Chief Compliance Officer.
A Full Exit
The latest development comes a month after a Binance spokesperson told The Wall Street Journal that the crypto firm was considering exiting the Russian market due to compliance with Western sanctions.
Binance has faced regulatory backlash from several United States agencies, including the Justice Department, over potential violations of the country’s sanctions against Russia after it invaded Ukraine.
In August, the firm limited its Russian peer-to-peer trading services by removing some sanctioned financial institutions from payment options on the platform. Binance also implemented fiat currency restrictions for its Russian users.
Meanwhile, Binance CEO Changpeng Zhao has assured Binance Coin (BNB) holders affected by the Russian exit that they would continue to enjoy the 25% trading fee discount on CommEx.
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