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  • Writer's pictureCarlo Manel

Binance to Offload Russian Operations in Unspecified Deal

Binance, the world's largest cryptocurrency exchange, has announced its decision to sell its Russian operations to the recently-launched exchange, CommEX, as it follows the trend of companies exiting Moscow amid Russia's conflict with Ukraine.

The financial details of the deal have not been disclosed, and Binance clarified that it will not receive any ongoing revenue share from the sale, nor will it retain an option to repurchase shares in the business. Chief Compliance Officer Noah Perlman stated that "operating in Russia is not compatible with Binance's compliance strategy," although the statement did not explicitly mention the Ukraine conflict, which Russia refers to as a "special military operation."

Binance also assured that all assets belonging to its existing Russian users remain secure and outlined plans for an orderly migration process for these users. The divestment process is expected to span up to one year.

CommEX, the acquiring entity, is a centralized cryptocurrency exchange with backing from crypto venture capitalists. The exchange was launched just one day prior to the Binance deal announcement and has not commented on the acquisition.

The decision to exit Russia aligns with a broader trend of Western companies, including Renault, Shell, McDonald's, and others, divesting their Russian assets or transferring management to local entities. These moves are driven by the need to comply with sanctions related to the Ukraine conflict and concerns about potential asset seizures by the Kremlin.

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