Russia-linked cryptocurrency exchange Exmo will no longer provide services to users in Russia, Belarus, and Kazakhstan.
London-based crypto exchange Exmo is the latest crypto trading platform to formally suspend its business in Russia and Belarus due to the Russian invasion of Ukraine.
Exmo is selling its digital assets business in Russia and Belarus to a Russia-based software development company, Exmo officially announced on April 18. At the time of this writing, the new owner and size of the company have not been disclosed.
“Unfortunately, we can no longer keep the high-risk part of the business, as a global group does not want to put global expansion plans at risk by keeping high-risk markets in its structure,” Exmo CEO Serhii said. Zhdanov. he told Cointelegraph.
The deal includes Exmo’s client accounts in Russia and Belarus, as well as local trust systems, Zhdanov said. The technical code of the platform is not sold and belongs entirely to the Exmo group.
As part of the deal, Exmo’s beneficial owner, Eduard Bark, will also leave the company, transferring his stake to Zhdanov.
In addition to Russia and Belarus, the deal also includes Exmo’s business in Kazakhstan, as the new owner’s team is based in Kazakhstan. The undisclosed buyer owns a Russian software development company and a Kazakhstan-based legal entity for a cryptocurrency exchange, the CEO noted.
“We put a lot of effort into the Russian part of the business, so we can assure you that it is now in good hands. The new owner not only follows the roadmap we created earlier, but will also reach new heights much more easily. We made this decision for the benefit of both parties,” Zhdanov said. The company said it will not penalize ordinary people or block accounts due to the sanctions in mid-March.
As part of Exmo’s exit from Russia and Belarus, Exmo amended its user agreement to state that Russian, Belarusian, and Kazakh residents will no longer be integrated into its platform. The exchange deactivated Russian ruble trading pairs on April 15.
Exmo is a major cryptocurrency exchange founded by Russian entrepreneurs Ivan Petuhovski and Pavel Lerner in 2013. The company’s departure from Russia will have a significant impact on the exchange, as Russia was one of its main markets, Zhdanov admitted, stating:
“A significant part of our business was located in Russia. We will have a revenue reduction of around 30%. However, in the long term, we are confident that this will accelerate our exponential growth and allow the company to become a unicorn in the next three years.”
“We consider going back when Russia is no longer classified as a high-risk country,” Zhdanov said.