Michaela
Crypto exchange Deribit has confirmed its departure from the European market, citing European Union (EU) sanctions, and has suspended services in Russia.
As reported by TASS, while the exchange operates from Dubai, its Dutch parent company is obligated to adhere to EU economic sanctions, influencing its decision to exit the European market.
According to the report, Russian nationals are prohibited from using the crypto exchange’s services, except in cases where they hold dual nationality with a European Economic Area (EEA) member country or Switzerland or have permanent residency in those regions. However, all Russian firms are banned.
“Due to EU sanctions against Russia, Deribit is no longer able to accept Russian nationals and Russian residents as its clients, unless an exception applies,” the exchange stated.
In response to the EU’s sanctions against Russia, financial services involving Russian clients have faced heightened scrutiny and restrictions.
The consequences of this exit are significant. Russian users, who make up the second-largest demographic on Deribit, will now be unable to trade on the platform, likely leading to a decrease in user activity and a potential loss of revenue.
Despite being the second-largest group, Russian traders may not be as reliant on Deribit as on other exchanges, as several competitors, including Binance and Huobi, have a more established presence in Russia.
While this move aligns with the EU sanctions, it may have a more significant financial impact on Deribit than on Russia’s crypto community. As some of Deribit’s competitors are still active in Russia, they could absorb much of the demand from Russian traders, reducing the long-term damage to the crypto market in Russia itself.
By exiting the Russian market, Deribit aligns with these measures, joining the broader trend of cryptocurrency exchanges adapting their operations to comply with international regulations.
This trend, while necessary to ensure legal compliance, could potentially limit the market reach and growth opportunities for exchanges that operate across multiple jurisdictions.
Read More
- Russia Crypto Mining Hub in Far East to Use Surplus Energy
- Russia’s Top Energy Provider to Launch Crypto Mining Operations
- Russia ‘Crypto Queen’ Bitmama Charged with Stealing $21M From Investors
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
