Binance, the world’s biggest cryptocurrency exchange, has sold its entire Russia-based business to a company called CommEX and fully exited the Russian market. This move comes as Russia is imposing stricter regulations on crypto exchanges while the U.S. is investigating Binance for potentially violating sanctions against Russia.
Back in May 2023, the U.S. Department of Justice began looking into whether Binance allowed Russian users on its platform despite U.S. sanctions after Russia invaded Ukraine. This was just the latest in a series of U.S. investigations into Binance’s operations.
In April 2023, Binance quietly lifted restrictions it had placed on Russian citizens and residents in March 2022 following EU sanctions on Russia. But now Binance has decided operating in Russia conflicts with its push for broader regulatory compliance.
To transition its Russian user assets securely, Binance and CommEX have outlined a gradual process lasting up to one year. Some new Russian user registrations will immediately be redirected to CommEX.
While the financial details are undisclosed, Binance will have no ongoing revenue share or option to buy back the Russian business in the future. This signals a complete exit from the Russian market.
Binance remains positive about crypto’s growth potential globally and plans to focus on its other 100+ countries of operation. The sale to CommEX can be seen as a strategic move by Binance to navigate complex regulations in Russia and worldwide.
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