Binance, the world’s leading cryptocurrency exchange, announced on Wednesday that it will divest its Russian operations to the newly established exchange CommEX, joining the growing list of companies exiting Moscow amid Russia’s conflict with Ukraine, reports state.
The reports claims that the financial specifics of the deal were not disclosed by Binance, and the company confirmed it will not continue to receive any revenue share from this transaction, nor retain the option to repurchase shares in the Russian business.
Binance’s Chief Compliance Officer, Noah Perlman, stated that the decision to exit the Russian market aligns with the company’s compliance strategy for the future, without explicitly mentioning the ongoing conflict in Ukraine, referred to by Russia as a “special military operation.”
Binance assured its Russian user base that its assets are secure and that a well-organized process will facilitate its transition. The divestment process is expected to span up to one year.
CommEX, a centralized cryptocurrency exchange, is financially supported by crypto venture capitalists, as indicated on its website. The exchange had just launched on Tuesday and has not yet provided a comment on the Binance deal.
Numerous Western companies, including Renault, Shell, McDonald’s, and others, have chosen to sell off their Russian assets or entrust them to local management in response to sanctions related to the conflict in Ukraine and concerns about asset seizure by the Russian government.