Cryptocurrency Giant Binance Announces Exit from Russia
The world's largest cryptocurrency exchange, Binance, has reached an agreement to sell its Russian business to the company CommEX and declared its complete withdrawal from Russia.
The company has stated that over the next few months, Binance will be closing down all exchange services and business operations in Russia. The process of disconnection will take up to a year to ensure a smooth transition for Russian users.
"We understand that operating in Russia is not compatible with Binance's compliance strategy (the process of adhering to local laws)," said Noah Perlman, Binance's Head of Compliance.
Binance has promised an "orderly process" for migrating users and will cooperate with CommEX in asset transfers.
"While the financial details of the agreement are not disclosed, it is important to note that with this sale, Binance is exiting Russia entirely. Unlike similar deals by international companies in Russia, Binance will not have any ongoing revenue-sharing from the sale and will not retain a buy-back option," the company emphasized.
Previously, Binance had already restricted Russians from conducting operations through P2P (peer-to-peer) with any currencies other than the Russian ruble. This decision was prompted by the adoption of the European Union's tenth package of sanctions against Russia.
As reported by The Gaze, Binance has been losing its share of the European market, attributed to both the cryptocurrency market's decline and increased regulatory scrutiny.
Binance's share of the overall cryptocurrency trading volume in the euro pair has dropped to 15%, compared to over 30% in January. According to the analytical firm SimilarWeb, the highest number of Binance users are currently registering from Vietnam, Turkey, India, and Argentina.
Researchers believe that Europe's tougher stance could limit Binance's opportunities, forcing the company to focus more on markets in Asia, Africa, and South America, where it will need to allocate additional resources for expansion.
Countries like the Netherlands and Belgium have already closed their doors to Binance, while Germany has not yet granted the exchange a license. It has also been revealed that French law enforcement agencies conducted searches at Binance offices as part of a money laundering investigation.