Deribit, a crypto derivatives exchange based in the Netherlands, has halted operations in Russia due to new EU sanctions. The company stated that providing services to Russian citizens and companies is now impossible except in certain cases.
EU Sanctions and Deribit's Withdrawal
Deribit withdrew from the Russian market following new EU sanctions imposed after Russia's invasion of Ukraine. The sanctions prohibit European crypto companies from serving Russian clients. The company asserted that the crypto market should be accessible to all, and these measures restrict the freedom of Russian citizens.
Alternatives for Russian Traders
With Deribit's exit, Russian traders are likely to look for alternative platforms. They may shift to decentralized exchanges like Uniswap and dYdX, which are harder to regulate. Centralized exchanges not restricted by EU sanctions, such as OKX and Bybit, may also see an influx of Russian users.
Impact on Deribit's Market Position
Exiting the Russian market may lead to Deribit losing a significant portion of its user base and trading volume. This decision could weaken its position against competitors who continue to serve Russian clients.
Deribit's withdrawal from the Russian market illustrates the impact of geopolitical tensions on the crypto industry. Future developments will show whether other major exchanges will follow Deribit's lead.
