Recent developments in the cryptocurrency exchange sector have seen Bybit EU, the European arm of the trading platform, suspend account openings for Russian citizens, including those with residence permits in European Union countries. This action follows similar restrictions implemented by the digital bank Revolut, which has started closing accounts of Russian clients lacking European citizenship.
According to reports, a user registered with the Dutch division of Bybit faced denial when attempting to re-verify their account after transitioning to Bybit EU. Customer service indicated that the updated policy restricts accounts based on nationality rather than residency. This policy similarly affects citizens from countries such as Afghanistan, Belarus, Iran, North Korea, Syria, and Sudan.
On November 1st, the Russian service of the BBC reported that Revolut commenced the closure of accounts belonging to Russian clients without EU citizenship or residency. Clients received notifications; first requesting residence permit documents, then notifying account closures. Previously, some Russian clients had been assured that restrictions would not take effect until at least the end of December.
As a globally regulated financial institution, Revolut stated that it must comply with sanctions from the UN, EU, UK, US, and other jurisdictions.
Bybit EU operates under European regulations and has acquired a license to expand its activities into 29 countries within the European Economic Area (EEA), providing crypto services to millions. On the other hand, Revolut, founded by Russians Nikolay Storonsky and Ukrainian Vlad Yatsenko in 2015, was granted a banking license by the Bank of Lithuania in 2018.
Measures against Russian banks and exchanges have been reinforced under the 19th EU sanctions package against Russia, introduced on October 23. The package includes a price ceiling on Russian oil and other regulatory restrictions, marking a challenging landscape for Russian clients dealing with international financial platforms.
