Exmo, a UK-based crypto exchange with a broad presence in Eastern Europe, is branching out from Russia, Belarus and Kazakhstan. Trading platform Exmo.com says it is taking this step to avoid jeopardizing its expansion into other sectors by operating in such high-risk markets. The business, along with the rights to the Exmo.me domain and branding, have been sold to a Russian seller.
Crypto Exchange Exmo Moves Russia Operations To Local Entity
Major Eastern European exchange Exmo announced earlier this week that it was selling its digital assets business in Russia and Belarus. The company explained the “difficult decision” with efforts to avoid risking its global expansion plans by operating in these countries. Both countries have been targeted by Western sanctions over Moscow’s invasion of Ukraine.
“In addition, our Russian UBO, Eduard Bark, is leaving the company, transferring his stake as part of a response to one of our directors, Serhi Zhdanov,” Exmo reported. “Kazakhstan customers were also included as a part of the deal, as a new team is based in Kazakhstan,” the press release further explained.
The Exmo.com user agreement has recently been changed to indicate that Russian, Belarusian and Kazakhstani residents are no longer being onboarded. The exchange also reminded traders that pairs with the Russian ruble on the Exmo.com platform have been disabled since April 15, 2022.
According to its website, Exmo currently has offices in the UK, Ukraine, Poland, Lithuania, the US and Cyprus and employs over 200 people. “As a company we are very confident and positive about the future of our business and consider the new structure of business to be commercially viable and sustainable,” it said in a statement.
Exmo is transferring the Russian, Belarusian and Kazakhstani crypto exchange business to the owner of a Russia-based software development company, one of the vendors that provided engineering services to the exchange over the past three years, without identifying the new unveiling announcement. was done. Unit.
According to the crypto news page of Russian business news portal RBC, ownership of Exmo’s assets in three markets has been handed over to a company named “ЭКСМО” (EXMO RBC LLP) on 31 March this year.
Nothing will change for customers in the three jurisdictions, a representative elaborated, as the new platform has the same branding, software and technological developments as well as the right to use the official domain Exmo.me. The change will allow the exchange to work more effectively with payment systems, banks, and actively participate in the regulation of cryptocurrencies in the region.
Exmo.me does not plan to restrict Russians’ access to cryptocurrencies, a company official said in another RBC report published on Thursday. The spokesperson also assured that the exchange will focus on expanding its operations in Russia:
We see great potential in the territory of the Russian Federation and will continue to actively develop the Russian part of the business and follow the long-term plans of the previous team.
Crypto businesses operating in the Russian market are facing increasing sanctions as Western governments continue to expand sanctions over the ongoing war in Ukraine, some of which are aimed at closing loopholes in the crypto space. Following news of the Exmo split, its main competitor in Russia, Binance, announced that it was limiting services for Russian users to comply with the latest EU sanctions.
Do you expect other crypto exchanges to exit the Russian market? Let us know in the comments section below.
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