Crypto firm Binance pulls out of Russia

Crypto firm Binance pulls out of Russia

Binance has taken a severe hit since crypto markets collapsed and regulators began probing the legality of its business
Binance has taken a severe hit since crypto markets collapsed and regulators began probing the legality of its business. Photo: JUSTIN SULLIVAN / GETTY IMAGES NORTH AMERICA/Getty Images via AFP/File
Source: AFP

PAY ATTENTION: Be the first to follow YEN.com.gh on Threads! Click here!

Cryptocurrency firm Binance said on Wednesday it was selling its Russia business, months after reports suggested US authorities were investigating possible sanctions violations.

Bloomberg reported in May that the US Department of Justice was looking into claims Russians had used Binance to skirt US sanctions imposed over Moscow's invasion of Ukraine.

The firm, which has faced severe regulatory hurdles across the world, has previously denied breaking sanctions but in a statement on Wednesday said it was making a "full exit" from the Russian market.

"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 said in a statement.

The firm said the process would take a year to complete and would involve selling its assets to CommEX, a company that only launched on Tuesday.

Read also

UK Lib Dem leader vows closer EU ties but not to rejoin

Iran controversy

In a message on X, formerly Twitter, reacting to the Binance deal, CommEX said: "A hearty welcome to our new users from Russia and around the world!"

PAY ATTENTION: Click “See First” under the “Following” tab to see YEN.com.gh News on your News Feed!

CommEX has a website and channels on the Telegram messaging app in Russian and English, but its representatives on Telegram deflected questions from users about its ownership and where it was based.

The firm did not immediately respond to an AFP request for comment.

Binance runs crypto exchanges and provides other services across the world but it has taken a severe hit since crypto markets collapsed and regulators began probing the legality of its business.

In November last year, the firm admitted its exchange had "interacted" with "bad actors" in Iran after Reuters reports alleged it had helped move billions of dollars in defiance of US sanctions.

Read also

EU tells Apple chief to 'open up' to rivals

Binance was founded in 2017 in China by Canadian national Changpeng Zhao but following a crypto crackdown by Beijing, he moved its operations to locations including Singapore, Bahrain, Dubai, Paris and the Cayman Islands.

New feature: Сheck out news that is picked for YOU ➡️ click on “Recommended for you” and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.

Online view pixel