Binance Sells Russian Business, to Exit Country
- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
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Major crypto exchange Binance will be selling its business in Russia to newly launched crypto exchange CommEX, and fully exit the market over the next several months, the company said in a press release on 27 September.
According to the announcement, Binance has entered into an agreement to sell the entirety of its business in Russia to CommEX, a crypto exchange that was officially launched on 26 September. Binance informed users that the off-boarding process could take up to one year, but assured then that it will work with CommEX to migrate its assets — which will remain safe — in an orderly fashion.
The financial details around the deal were not disclosed, but Binance’s CCO Noah Perlman said “operating in Russia is not compatible with Binance’s compliance strategy”, and that this sale will allow the exchange to “sunset all exchange services and business lines in Russia”. The exchange also noted in the press release that unlike similar deals, it will have no ongoing revenue split from sale, nor does it maintain any option to buy back shares in the business.
The news of Binance’s exit from Russia comes several months after it was reported that the exchange was facing a Department of Justice (DoJ) inquiry into whether it was in violation of U.S. sanctions related to Russia. Data from SimilarWeb shows that the Russian market is one of the largest for Binance, with Russian residents accounting for 6.9% of total website visits.
- Karl Greenwood, co-founder of the OneCoin crypto pyramid scheme, was sentenced to 20 years in prison, and ordered to pay back the $300 million he made in commissions.
- Greenwood was the “global master distributor and the leader of the MLM (multi-level marketing) network” during his time in OneCoin, earning him 5% of all monthly sales.
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- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.