Cryptocurrency exchange Binance has announced its decision to sell its Russia business to the newly launched exchange CommEX. The move comes in the wake of several Western companies exiting Moscow following the country's conflict with Ukraine. The financial details of the transaction have not been disclosed by Binance, which is currently the world's largest cryptocurrency exchange.
The company clarified on Wednesday that it will not maintain an option to buy back shares in the business nor will there be an ongoing revenue split from the sale. Binance's Chief Compliance Officer, Noah Perlman, stated that operating in Russia was not compatible with Binance's compliance strategy. However, Perlman did not make any direct reference to the ongoing war in Ukraine, which Russia refers to as a "special military operation."
Binance reassured its existing Russian users that their assets are safe and that there will be an orderly process for migrating users. The divestment process is expected to take up to a year.
CommEX, the purchaser of Binance's Russia business, is a centralized cryptocurrency exchange backed by crypto venture capitalists. The company had just launched its exchange on Tuesday and has yet to comment on the Binance deal.
This decision by Binance follows a trend of Western companies such as Renault (EPA:RENA), Shell (LON:SHEL), McDonald's (NYSE:MCD), and others, who have either sold their Russian assets or handed them over to local managers. This is seen as a compliance measure with sanctions imposed due to the war in Ukraine and also a response to threats from the Kremlin of potential seizure of foreign-owned assets.
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