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Cryptocurrency exchange Binance said it will sell its entire business operations in Russia to CommEX, a global digital asset solutions firm, amid concerns over compliance in the country.
While financial specifics of the deal remain undisclosed, Binance said it won’t get any “ongoing revenue split from the sale” and won’t maintain the option to repurchase shares either.
The company also said that there will be “an orderly process for the migration of users” and that “all assets of its existing Russian users are safe.” Additionally, some new user registrations from Russia, subject to know-your-customer compliance, will be redirected to CommEX.
Earlier this year, Binance’s vice president for Eastern Europe Gleb Kostarev and Vladimir Smerkis, general manager for Russia and the Commonwealth of Independent States, left the company after it hinted at potentially withdrawing its services from Russia due to Western sanctions. Binance also laid off at least 1,500 employees this year.
The exchange has also been facing regulatory scrutiny and legal challenges from various authorities in the US and other countries.
Both Binance and its US entity have been accused of violating securities laws and mishandling customer funds by US agencies such as the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Last month, Binance launched a new platform that supports 34 tokens for spot trading for the Japanese market.
See also: US civil suit against Binance.com: What’s the real motivation?
Editing by Dhania Putri Sarahtika
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