UK Crypto exchange Exmo sells part of its business in Russia and Belarus

Exmo has formally suspended its business in Russia and Belarus because of the ongoing Russia-Ukraine dispute.
Exmo has formally suspended its business in Russia and Belarus because of the ongoing Russia-Ukraine dispute.

The famous crypto exchange platform in the United Kingdom, Exmo, has formally suspended its business in Russia and Belarus because of the ongoing Russia-Ukraine dispute which has resulted in the loss of many lives in both nations.

On Monday, the exchange announced that it is selling its crypto business in Russia and Belarus to a Russian software development company, citing potential risk to its “global expansion plans by operating in such high-risk markets.” However, the details regarding the owner and size of the deal are not disclosed at the time of publication. 

The CEO of the company, Serhii Zhdanov said during an interview that the company “can’t anymore hold the high-risk part of the business, since a global group does not want to put the global expansion plans at any risk by keeping such high-risk markets in its structure.”

Technical code is still under the control of Exmo

According to Zhdanov, the acquisition includes Exmo’s customer accounts in Russia and Belarus, as well as local fiat onramp systems. The platform’s technical code is not for sale and is solely controlled by the Exmo group.

The company’s primary beneficial owner, Eduard Bark, is also quitting the company and transferring his interest to Zhdanov as part of the arrangement.

Exmo’s business in Kazakhstan is included in the purchase, in addition to Russia and Belarus, because the new owner’s team is situated in Kazakhstan. According to the CEO, the unnamed buyer controls a Russian software development firm as well as a Kazakhstan-based legal entity for a crypto exchange.

Notably, the EXMO.com user agreement was recently updated to specify that citizens of Russia, Belarus, and Kazakhstan will no longer be accepted. The company had already disabled Russian Rouble pairs on its platform from April 15, 2022.

Exmo closed the statement by showing confidence and positivity about its future businesses and said that it considers “the new structure of the business commercially viable and sustainable.”

Despite the constant request by Ukraine for a major crackdown on Russian crypto investors, multiple big exchanges like Binance are still operating in the country. However, they have said that they would comply with the sanctions against certain individuals rather than all the citizens of the nation.