The Binance exchange announced this week that it is withdrawing from the Russian market.
The cryptocurrency company’s CEO Changjin Zhao denied reports about his team’s ties with CommEX, a platform that will become the buyer of Binance’s Russian business.
At the same time, Russian citizens permanently residing in other states will be able to use the services of the exchange in normal mode.
Institutional investors began to prepare for the withdrawal of assets from Binance because of the fear that the company may go bankrupt.
According to The Wall Street Journal, investment funds and asset management companies admit that Binance may collapse amid increased regulatory pressure and as a result of withdrawal from major markets such as Russia.
A big blow for Binance was a lawsuit filed by the Securities and Exchange Commission (SEC).
Binance CEO Changpeng Zhao became a defendant in the process initiated by the regulator.
European authorities are also putting pressure on the cryptocurrency company. Some EU countries have banned the activities of the exchange on their territory.
Since the beginning of the year, Binance’s share of the spot market has fallen below 50%. The company has been forced to lay off up to 1,500 employees to cut costs.
Changpeng Zhao recently denied rumors about a possible bankruptcy of the exchange and emphasized that Binance has no financial problems.