Exmo’s Strategic Retreat
In a significant move reflective of the current geopolitical climate, the London-based cryptocurrency exchange, Exmo, has chosen to suspend its operations in Russia and Belarus. This decision predominantly stems from the ongoing crisis following Russia’s invasion of Ukraine, compelling Exmo to hand over its digital asset business to a local software development firm.
The Ownership Transition
Exmo officially announced the transition on Monday but has yet to disclose who the buyer is or the financial specifics involved. Exmo CEO Serhii Zhdanov elaborated, “Unfortunately, we can’t anymore hold the high-risk part of the business since a global group does not want to risk its expansion plans by keeping high-risk markets in its structure.” This leaves us all wondering: what exactly defines a “high-risk market”—is it simply a place where you might need to pay for coffee with Bitcoin?
What’s Included in the Deal?
In a nutshell, the deal comprises Exmo’s client accounts, local fiat onramp systems in both Russia and Belarus, and even its business operations in Kazakhstan—the latter due to the owner’s base in Kazakhstan. However, worry not, the platform’s technical code remains with Exmo, safe and sound, likely humming away with dreams of global expansion.
Future Plans and Financial Impact
With this transition, Exmo has updated its user agreement to halt onboarding for residents of Russia, Belarus, and Kazakhstan. Just this past Friday, trading pairs in Russian rubles were disabled, marking a strong dividing line in its operational territories.
Zhdanov acknowledges the financial impact of this exit, noting that around 30% of Exmo’s revenue was tied up in Russia. But in the spirit of optimism, he insists, “We are sure that it will speed up our growth.” Apparently, losing millions somehow lines you up for unicorn status—no pressure, right?
The Company’s Legacy
Founded in 2013 by Russian entrepreneur Eduard Bark and blockchain enthusiast Ivan Petuhovskii, Exmo is undergoing a dramatic rebranding. The exchange will now be known as Exmo.com while the Kazakhstan entity becomes Exmo.me. Bark, who was instrumental in Exmo’s rise, is stepping down as part of the reorganization—which some might equate to a breakup without the awkward “It’s not you, it’s me” speech.
Looking Ahead: Exmo’s Return?
As Exmo closes this chapter, Zhdanov hinted at the possibility of a return if conditions improve. “We would consider returning when Russia is no longer classified as a high-risk country,” he said, leaving us all to ponder the ever-shifting landscape of geopolitics that could make a long-term plan feel like trying to hit a moving target. But let’s be real—who doesn’t love a good comeback story?
