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. Russian traders are a significant part of Deribit’s user base, being the second-largest group on the platform.
However, other exchanges still dominate the Russian crypto market. This decision aligns with EU regulations but may have a more significant impact on Deribit than on Russia’s crypto sector.
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.” The sanctions affect Deribit directly because of its Dutch parent company.
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. However, even Russians living in Dubai can no longer sign up for the platform.
Deribit faces other challenges as well. Recently, it was considered a buyout by Kraken, indicating possible financial issues. While the platform is popular in Russia, it ranks below several larger competitors.
