rewrite this title Deribit to Exit Russia as EU Sanctions Tighten: Trading Restrictions Begin Feb. 17 – Crypto-News.net

Deribit will exit Russia due to EU sanctions, restricting Russian accounts to “reduce-only” mode from Feb. 17 and closing all positions by March 29. Withdrawals will remain open.

Russian Accounts to Be Restricted on Deribit Starting Feb. 17

Deribit, a leading cryptocurrency derivatives exchange, has announced it will cease operations in Russia due to European Union (EU) sanctions. The Panama-based platform confirmed on Feb. 5 that Russian nationals and residents will face trading restrictions, with full account closures set for March 29.

Starting Feb. 17, Russian accounts will be switched to “reduce-only” mode, meaning users can close existing positions but cannot open new ones. By March 29, all remaining open positions will be forcibly closed. However, Russian users will still be able to withdraw funds.

In a statement, They explained:

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. Since Deribit’s parent company is Dutch, these EU sanctions are relevant to us.

EU Sanctions Force Crypto Exits from Russia

Deribit’s exit follows the EU’s decision to tighten sanctions on Russia after its 2022 invasion of Ukraine. These sanctions prohibit EU-based cryptocurrency companies from offering services to Russian residents unless they hold European Economic Area (EEA) or Swiss citizenship or residency.

The penalties for violating these sanctions are severe. Individuals who breach the regulations face at least five years in prison, while companies could be fined a minimum of 5% of their global revenue or €40 million ($41.5 million), whichever is higher.

Deribit now joins Binance, which exited Russia in 2023 due to similar restrictions. Other crypto platforms operating under EU jurisdiction may follow suit as regulatory pressure increases.

Impact on Russian Crypto Users

Russian users affected by this decision must act before the deadlines to avoid forced liquidations. While withdrawals will remain open, the inability to open new positions could disrupt trading strategies.

Deribit advises impacted customers to review their accounts and close positions before March 29. Users should also monitor updates from the exchange to ensure compliance with any additional regulatory changes.