Support The Moscow Times!

World’s Largest Crypto Exchange Exits Russia

Kanchanara / pexels

The world’s largest crypto exchange Binance announced Wednesday that it was selling its Russian operations to a newly created “community exchange” and fully exiting the country.

Binance's announcement follows reports that the U.S. Justice Department was investigating the company for potential violations of war-related sanctions on Moscow.

“Binance has entered into an agreement to sell the entirety of its Russia business,” the company said in a statement.

It named CommEX — which announced its launch on Tuesday — as the buyer.

“Over the next several months, Binance will sunset all exchange services and business lines in Russia,” the company said, adding that it was confident about a “smooth” transition.

Binance did not disclose the financial terms of the deal but stressed that it would not receive an “ongoing revenue split” or a buyback option from the sale.

Binance assured its Russian clients that their assets were “securely protected” and that it would take up to one year to transfer them to CommEx.

Russians have increasingly turned to using crypto exchanges after Western sanctions cut off Russian banks from global payment networks.

CommEx said it will not register users based in Russia-annexed Crimea, potentially cutting off residents of the Black Sea peninsula from its services. 

The company also does not provide account registration in the United States, the European Union, as well as in Iran, Cuba, Syria and North Korea.

Binance’s withdrawal from Russia comes a month after the exchange banned Russia-based users from trading in all non-ruble currencies.

“As we look toward the future, we recognize that operating in Russia is not compatible with Binance's compliance strategy,” said Noah Perlman, Binance’s chief compliance officer.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more