EU Sanctions Force Deribit to Exit Russian Market

Crypto derivatives exchange Deribit has announced its withdrawal from the Russian market, citing new European Union (EU) sanctions. The Dutch-based parent company of Deribit is required to comply with EU economic restrictions, leading to the ban of Russian nationals and residents from the platform.

Russians make up the second-largest demographic on Deribit, but several competitors are more popular within the country. The sanctions may actually harm Deribit more than the broader crypto community in Russia. Deribit has faced significant regulatory challenges in the past, which led to its relocation to Dubai in 2023. However, even Russians living in Dubai are banned from registering on the exchange.

Deribit's recent setbacks include considering a buyout from Kraken last month. Data shows that Deribit is a popular exchange within Russia but not as popular as several other competitors. Russian citizens are the second-largest demographic of users by country on Deribit's end.

In response to the EU sanctions, Deribit will enforce trading restrictions beginning Feb. 17, with full account closures set for March 29. Russian nationals and residents will no longer be able to access the platform unless they meet specific exceptions. Russian users residing in European Economic Area countries or Switzerland will still be permitted to trade. However, Russian nationals living in non-EEA countries, as well as Russian businesses, are entirely restricted from using the exchange.

The decision follows the EU's ongoing financial sanctions against Russia. Users impacted by the restrictions will be placed on "reduce-only" mode, allowing them to close existing positions but preventing new trades. Withdrawals will remain available even after the final closure date.