Exmo, a cryptocurrency trading platform based in London, has been forced to suspend all business in Russia and Belarus following Russia’s invasion.
Exmo announced that it is selling its digital assets business in Russia, Belarus and Belarus to a Russian-based software development firm on April 18. The new owner and amount of the deal were not disclosed at the time of writing.
Exmo CEO Serhii Zhdanov stated to Cointelegraph that the business’ high-risk segment is no longer available. “Unfortunately, this is because a global group doesn’t want to risk its global expansion plans by keeping high-risk markets in their structure,” he said.
Zhdanov stated that the deal covers Exmo’s Russian and Belarusian client accounts as well as local fiat-onramp systems. The Exmo group owns the entire technical code for the platform and it is not being sold.
Exmo’s ultimate beneficial shareholder Eduard Bark will also be leaving the company and will transfer his stake to Zhdanov as part of the deal.
Exmo’s Kazakhstan business is included in the deal, as the new owner’s Kazakhstan-based team is also included. According to the CEO, the undisclosed buyer is also the owner of a Russian software development firm and a Kazakhstan-based legal entity that will allow for cryptocurrency exchanges.
We’ve invested a lot in the Russian business and made sure it’s in good hands. The new owner will not only follow the previously established roadmap, but will also make it easier to reach new heights. Zhdanov stated that this was for both the good and bad of both parties. Zhdanov stated that the firm will not sanction or block accounts of regular people due to sanctions in March.
Exmo’s withdrawal from Russia and Belarus has resulted in Exmo amending its user agreement so that Kazakh, Belarusian, and Russian residents cannot be onboard its platform. On April 15, the exchange removed Russian ruble trading pairs.
Exmo was founded in 2013 by Russian entrepreneurs Pavel Lerner and Ivan Petuhovski. Zhdanov stated that Russia was one of the main markets for Exmo.
“Russia was a significant part of our business. The revenue will drop by almost 30%. We are confident that this will allow us to accelerate our exponential growth and make the company a unicorn within the next three years.
Zhdanov stated that he would consider returning to Russia if Russia is no more considered a high-risk country.
Related: Github suspends Russian developers’ accounts linked to sanctioned companies
This news comes just a week after Currency.com, a Belarus-linked cryptocurrency exchange, announced that it would be ceasing operations in Russia.
Binance, one of the largest crypto exchanges, is still in operation in Russia. They have chosen to adhere to sanctions against certain individuals and not entire countries.