Moscow, Russia
Crypto firm Binance announced Wednesday (Sep 27) it was making full exit from Russia and selling its assets in the country to another firm CommEX.
CommEx was only launched on Tuesday, raising eyebrows of observers around the world.
The news comes amidst piling accusations on Binance that it helped the Russian government skirt sanctions that were imposed following Moscow’s invasion of Ukraine.
It was reported in May that US Department of Justice had opened an investigation into potential sanctions violations by Binance in Russia.
Announcing the move in a statement, Binance said operating in Russia was no longer ‘compatible’.
“As we look toward the future, we recognise that operating in Russia is not compatible with Binance’s compliance strategy,” chief compliance officer Noah Perlman.
The firm also said that the process will take at least a year to conclude.
Statement by CommEX
In a message posted on X, CommEx welcomed its new users from Russia. “A hearty welcome to our new users from Russia and around the world,” its message read.
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CommEX operates a website and maintains Telegram channels in both Russian and English. However, when users inquired about its ownership and location on Telegram, its representatives avoided answering these questions.
About Binance
Binance, a global cryptocurrency exchange provider, has faced significant challenges due to the collapse of cryptocurrency markets and increased scrutiny from regulators regarding the legality of its operations.
In November 2022, Binance acknowledged that its exchange had engaged with individuals involved in illicit activities in Iran. This admission came in response to reports from Reuters that accused the exchange of facilitating the movement of billions of dollars in violation of US sanctions.
Binance was established in 2017 by Canadian national Changpeng Zhao in China. However, in response to increased cryptocurrency regulations by the Chinese government, the company relocated its operations to various locations, including Singapore, Bahrain, Dubai, Paris, and the Cayman Islands.
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