London-based cryptocurrency exchange Exmo has decided to close down its operations in Russia and Belarus due to the ongoing conflict following Russia’s invasion of Ukraine.
Exmo has confirmed that it is selling its digital asset business in Russia and Belarus to a Russian software development company. The details of the buyer and the financial terms of the deal have not been disclosed yet, as per the official announcement made by Exmo on April 18.
CEO Serhii Zhdanov explained, “We cannot afford to continue operating in such high-risk markets as it could jeopardize our global expansion plans. Therefore, we have decided to sell our business in Russia and Belarus.”
As part of the agreement, Exmo’s customer accounts and local fiat onramp systems in Russia and Belarus will be transferred to the new owner, while the platform’s technical code will remain the property of Exmo.
In addition to exiting Russia and Belarus, the deal also includes Exmo’s operations in Kazakhstan since the new owner’s team is based there. The buyer, who is undisclosed, owns a Russian software development company and a legal entity in Kazakhstan for a cryptocurrency exchange, Zhdanov revealed.
Zhdanov expressed confidence in the new owner’s ability to continue the work that Exmo had started, stating, “We have made this decision in the best interests of both parties to ensure the smooth transition of operations and continued growth.”
Following this transition, Exmo has updated its user agreement to announce that residents from Russia, Belarus, and Kazakhstan will no longer be able to register on its platform. Russian ruble trading pairs were disabled on April 15 as part of the company’s exit strategy.
Founded in 2013 by Russian entrepreneurs Ivan Petuhovski and Pavel Lerner, Exmo acknowledges that the departure from Russia will have a substantial impact on its revenue, with an expected decrease of around 30%. Nevertheless, Zhdanov is optimistic about the future growth prospects of the company, aiming to achieve unicorn status within the next three years.
“We are hopeful that we can return to Russia once the situation stabilizes and the country is no longer considered a high-risk market,” Zhdanov added.
The announcement from Exmo comes shortly after the closure of Belarus-connected crypto exchange Currency.com in Russia. While some major exchanges like Binance continue to operate within Russia, they are adjusting their operations to comply with sanctions targeting specific individuals rather than entire countries.
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