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Binance is selling its Russia business and exiting the market amid increased regulatory scrutiny,  Ryan writes.

Why it matters: Leaving Russia alleviates some legal pressure for Binance, but the exchange still faces plenty of regulatory hurdles elsewhere.

Driving the news: Binance announced that it had entered into an agreement to sell its Russia operations to CommEX, a newly launched crypto exchange in that market.

Financial terms were not disclosed, but Binance emphasized there will be no ongoing revenue split from the sale, and it won't have any option to buy back shares in the business.

The offboarding process could take up to a year as it migrates users and their assets to the CommEX platform, it said.

Flashback: Binance's Russia business had become a headache for the company, as it faced legal risks associated with its operations there.

In May, Bloomberg reported the U.S. Department of Justice was investigating Binance for potentially allowing Russians to skirt U.S. sanctions and move money through its exchange.

More recently, the Wall Street Journal reported the exchange was continuing to help some Russians move money abroad.

Soon after, Binance moved to limit some peer-to-peer trading and said it was considering an exit from the market.

Zoom out: Binance's troubles aren't limited to Russia.

TThe CFTC filed a civil case against it in March, alleging that the exchange didn't try to prevent U.S. citizens from using its financial derivatives products.

In June, the SEC sued Binance and founder Changpeng Zhao, alleging market manipulation, securities law violations and fraud.

The intrigue: CommEX officially launched yesterday, and little is known about the fledgling exchange.

In its launch post, CommEX said it will provide its users with spot, futures, and peer-to-peer trading.

What they're saying: "As we look toward the future, we recognize that operating in Russia is not compatible with Binance's compliance strategy," Noah Perlman, Binance's chief compliance officer, wrote in a statement.

1 big thing: Binance exits Russia

Illustration of a crypto coin against the Russian flag.

GTCR and Apax Partners are reportedly weighing an IPO or sale of insurance broker AssuredPartners in a deal that could be valued up to $16 billion, Bloomberg reports.

Why it's the BFD: A number of insurance brokerage stocks have been outperforming in public markets, Lucinda writes.

Context: Shares of brokerage and risk firm Arthur J. Gallagher are up about 23% since the start of the year, and shares of Brown & Brown are up 25% in the same period.

The S&P 500, for comparison, was up 12% for the same time frame.

Details: GTCR and Apax are weighing a full or partial sale as well as an IPO, per Bloomberg.

The firm is set to hit $850 million in EBITDA and was last valued at about $5.1 billion.

AssuredPartners notably focuses on property and casualty, as well as employee benefits.

Of note: The sector has remained active in tuck-in acquisitions. In a recent earnings call, Arthur J. Gallagher CFO Douglas Howell estimated that the company has upward of $3 billion to spend on M&A both this year and next.

Days ago, the company acquired Hartley Cylke Pacific Insurance Services.

Brown & Brown also completed six acquisitions in the second quarter.

The intrigue: Most insurtech startups that have gone public recently are focused specifically on disrupting this market of middlemen. 

Right now, the old-school middlemen are on far steadier ground.

AssuredPartners declined comment. Apax and GTCR did not respond to requests for comment. 

AssuredPartners reportedly weighing IPO, sale

2. The BFD: Insurance brokerage on the block

Illustration of advertisement on a telephone pole with ripped off tabs. The ad has “For Sale IPO"

❌ Chase UK blocks customers from buying crypto (CNBC)

Starting Oct. 16, the bank's customers will no longer be able to make crypto transactions via debit card or by outgoing bank transfer. It is taking this step because "fraudsters are increasingly using crypto assets to steal large sums of money from people," Chase UK said.

💸 MoneyGram to launch non-custodial digital wallet (PYMNTS)

The wallet, set to debut in the first quarter of 2024, will enable users to move from fiat to digital currency as a new way to send and receive cross-border payments.

🦑 Kraken secures licenses in Ireland and Spain (Blockworks)

The crypto firm received an EU e-money institution license from the Central Bank of Ireland and a virtual assets service provider (VASP) registration from the Bank of Spain.

🤔 Payment tech could reduce hunger (American Banker)

Dave Etling argues for prepaid cards with restricted spend capabilities, which would specify what products consumers are able to pay for using a given card, to tackle food insecurity. "This setup can significantly reduce administrative burdens for both the health plan and their members," he writes.

3. Credit score

Illustration of a tape measure with "Credit Score" written on the side.

Want more fintech deals? Check out the Axios Pro Deals Tracker beta.

• Gringo, a Brazilian payments and insurance app for drivers, raised $30m in Series C funding. Valor Capital led and was joined by Kaszek, VEF, Piton, One VC, ICU Ventures and Actyus. https://axios.link/3M1BkFp

• Bright Money, a San Francisco-based financial wellness startup, raised $12m in equity financing from Alpha Wave, Hummingbird and PeakXV. It also secured $50m in debt financing from Encina Lender Finance. https://axios.link/46tyuAu

• Vega, a British investment platform for high net worth individuals, raised over $8m from Motive Ventures, Picus Capital, Citi Ventures and No Label Ventures. https://axios.link/3LCDjiV

• Revio, a South African payments orchestration startup, raised $5.2m in seed funding. QED led and was joined by Partech. https://axios.link/3RxK8X1

• Ondorse, a Paris-based KYC solution, raised €3.8m in seed funding. Eurazeo and ISAI led the round. https://axios.link/45XZwjL

• AnchorWatch, a Nashville-based crypto insurance provider, raised $3m in funding led by Ten31. https://axios.link/3tgAkX5

• LeverFi, a DeFi leverage firm, raised $2m from DWF Labs. https://axios.link/3PBWNWp

• Wells Fargo has partnered with asset manager Centerbridge to launch a $5b private credit fund that will lend to mid-size U.S. companies. https://axios.link/3EQgFjw

• Funding Societies, an SME digital finance platform for Southeast Asia, secured $27m in debt financing led by AlteriQ Global, with Aument Capital Partners and Orange Bloom also participating. https://axios.link/3th6cuH

• Maxwell, a Denver-based digital mortgage platform for lenders, today announced it has acquired Chicago-based point-of-sale loan origination platform Revvin (fka MortgageHippo). Terms were not disclosed. himaxwell.com

4. Deals!

• Sam Kemp, formerly chief strategy officer at GoDaddy, was named CFO of Nashville-based fintech Built Technologies. https://axios.link/3PR3t4a

• Charlie Kroll has stepped down as COO of Lithic. https://axios.link/4531NZK

5. It's personnel

Situational awareness: Financial crime compliance cost financial institutions an estimated $206 billion last year, according to Lexis Nexis research.

 ⚾ @Ryan is so ready for Red October. Let's go, Phils! (George remembers when Boston teams were on this kind of roll...)

Thanks to George Moriarty and Rob Reinalda for today's edits.

And thanks to you for reading. Please tell your fintech friends about this newsletter. They can sign up here.

September 27, 2023

1 big thing: Binance exits Russia