World’s largest crypto exchange Binance has announced on Wednesday that it will be leaving the Russian market.
Binance has announced that it would be exiting Russia and selling off its operations. The sale comes amidst regulatory investigation and sanctions by US authorities.
Binance exits Russia
World’s largest crypto exchange Binance has announced on Wednesday that it will be leaving the Russian market.
“As we look toward the future, we recognise that operating in Russia is not compatible with Binance’s compliance strategy,” chief compliance officer Noah Perlman said in a statement.
The move will involve the sale of its entire Russian operation to CommEX, a new crypto exchange. The exchange said it will guide its customers on how they will move their assets to the new platform. A fraction of Binance’s Russia users who have completed KYC procedures will be swiftly moved and redirected to CommEX.
Read more: Binance considers a ‘full exit’ from Russia as regulatory pressure mounts
The exchange said that the sale and other processes will take a year to complete.
Binance highlighted that it won’t accept any ongoing sales commissions. The firm maintained that it no longer has the ability to buy back shares of the company at any time.
Binance has been subject of investigation by the US Securities and Exchange Commission (SEC), and other regulatory bodies. In May, the US Department of Justice said it was looking into claims that Russians had used Binance to bypass sanctions imposed as a result of Russia’s invasion of Ukraine.
Regulators throughout the world have long urged for stronger regulations on cryptocurrency exchanges, including Binance, the biggest in the world, to stop criminal activities including money laundering and terrorism financing.
The decision treads the path of Renault, Shell, McDonald’s, and other Western brands who have decided to sell off their Russian assets or hand them over to local managers.
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