Exmo.com is a U.K.-based digital currency exchange that has a strong presence in Eastern Europe. The trading platform, Exmo.com, says it’s making the move to avoid jeopardizing its expansion in other regions by operating in high-risk markets like these. Russian buyers purchased both the Exmo.me domain rights and Exmo.me branding.
Crypto Exchange Exmo – Russia Operations to Local Entity
Major Eastern European exchange Exmo announced earlier this week it’s selling its digital asset business in Russia and Belarus. The company explained the “tough decision” with efforts to avoid risking its global expansion plans by working in these countries. Both nations 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 a part of a response to one of our directors, Serhii Zhdanov,” Exmo pointed out. “Kazakhstan clients were also included as a part of the deal, since a new team is based in Kazakhstan,” the press release further revealed.
Exmo.com has recently updated its user agreement so that residents of Kazakhstan, Belarus and Russia are not being added to the exchange. The Exmo.com exchange reminded traders that the Exmo.com platform has been deactivating pairs using the Russian ruble since April 15, 2022.
Exmo maintains offices in the U.K. Ukraine, Poland and Lithuania and has more than 200 employees. “As a company we are very confident and positive about the future of our business and consider the new structure of the business commercially viable and sustainable,” a statement noted.
Exmo will transfer the Russian, Belarusian, and Kazakhstan crypto exchange businesses to the owner of Russia-based software developers company. This is one of three vendors who have provided engineering services for the exchange over the last three years. The announcement was made without identifying the entity.
According to the crypto news page of the Russian business news portal RBC, the ownership of Exmo’s assets in the three markets has been handed over to a company called “ЭКСМО РБК ТОО” (EXMO RBC LLP) on March 31, this year.
A representative explained that customers will remain the same in all three jurisdictions. This is because the platform retains the right to use Exmo.me’s branding and software as well as technical innovations. This transformation will enable the exchange to interact more efficiently with banks, payment systems and allow it to participate actively in regulation of cryptocurrency in the region.
Exmo.me does not plan to restrict Russians’ access to cryptocurrencies, a company official was quoted as stating in another RBC report published Thursday. According to the spokesperson, Exmo.me will continue expanding its Russia operations while stressing:
We believe there is great potential for the Russian Federation. Therefore, we will keep working to develop and implement the Russian portion of our business.
As Western governments increase sanctions against Ukraine’s ongoing conflict, many of these are designed to close loopholes within the cryptocurrency space. Crypto-related restrictions are increasing for Russian businesses. Following the news of the Exmo split, its main competitor in Russia, Binance, announced it’s limiting services for Russian users to comply with the latest EU sanctions.
Are you expecting other cryptocurrency exchanges to leave the Russian market soon? Please let us know your thoughts in the comment section.
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