Binance, the world’s largest cryptocurrency exchange, announced that it will exit the Russian market by selling its business to rival exchange ComEx.
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 will sell Russian business
Binance noted that the transfer of users’ assets will be orderly as it will partner with ComX to inform affected parties of the process. It will also allow users to be redirected to ComEx who have completed the Know Your Customer registration process, which was just launched on September 26.
The crypto trading platform did not disclose 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 not have any revenue split from the sale and will have no option to buy back shares in the business.
Binance will shut down all Russian exchange services and business lines over the next few months while ensuring a smooth user migration process.
“As we look to the future, we believe that operating in Russia is not compatible with Binance’s compliance strategy. Noah Pearlman, Chief Compliance Officer at Binance, said: “We are confident in the long-term growth of the Web3 industry around the world and will focus our energies on the more than 100 countries in which we operate.
a complete 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 possible violations of the country’s sanctions against Russia following its invasion of Ukraine.
In August, the firm limited its Russian peer-to-peer trading services by removing some approved 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 will continue to enjoy a 25% trading fee discount on ComEx.
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