Deribit, a cryptocurrency exchange based in Dubai and owned by a Dutch company, has announced a ban on Russian users due to new EU sanctions.
Sanctions and Their Impact on Deribit
Russian traders are a significant part of Deribit’s user base, being the second-largest group on the platform. This decision aligns with EU regulations but may have a more significant impact on Deribit than on Russia’s crypto sector.
Exceptions for Russian Users
According to TASS, Deribit is completely withdrawing from Russia, with a few exceptions. Russian-born individuals who have citizenship or permanent residency in the European Economic Area can still access the platform. However, all Russian firms are banned from using Deribit. In a statement, Deribit explained, 'Due to EU sanctions against Russia, we can no longer accept Russian nationals or residents as clients, unless an exception applies.'
Implications for Russia's Crypto Industry
These sanctions have greatly impacted Russia’s crypto industry. Digital assets are increasingly used to bypass financial restrictions. Russian officials have acknowledged this, especially during last year’s BRICS Summit. Meanwhile, the U.S. Treasury is tightening sanctions on crypto platforms that facilitate Russian transactions.
Deribit had previously operated in Russia despite U.S. sanctions, but the new EU measures forced a change. This is part of a larger regulatory struggle that led Deribit to move to Dubai in 2023. Deribit faces other challenges as well, such as the potential buyout by Kraken, indicating possible financial issues.
