Binance exits Russia with sale to new crypto exchange CommEX

Cryptocurrency exchange Binance said on Wednesday it will sell its Russia business to newly launched exchange CommEX, becoming the latest company to pull out of Moscow since the country began its war against Ukraine.

Binance, the world’s largest cryptocurrency exchange, did not disclose financial details of the deal. 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.

"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, without referring to the war in Ukraine.

Binance also said that all the assets of its existing Russian users were safe and that there will be an orderly process for the migration of users. The divestment process will take up to one year, it added.

CommEX is a centralised cryptocurrency exchange backed by crypto venture capitalists, according to its website. The company only launched its exchange on Tuesday. It did not respond to a request for comment on the Binance deal.

Many Western companies, including Renault, Shell, McDonald’s and others, have agreed to sell their Russian assets or hand them over to local managers to take action to comply with sanctions over the war in Ukraine and deal with threats from the Kremlin that foreign-owned assets may be seized.

Last week, Mondi reached an agreement to sell off its last remaining facility in Russia to a Moscow-based real estate development company, Business Day reported. With Staff Writer

Reuters