Crypto exchange KuCoin announced on 29 October that it is stopping service to users in Russia and Belarus with immediate effect, across all products, services and features. Affected users will receive individual notices with deadlines and instructions for closing positions and withdrawing funds. The company did not publish a single withdrawal deadline for everyone. The move comes as international exchanges pull out of markets under Western sanctions.

What it means: Crypto has been flagged by EU, US and UK authorities as a possible route for evading sanctions on Russia, and EU sanctions packages have progressively banned crypto services to Russian nationals and residents. Large exchanges that want to keep access to Western banks, obtain licences in Europe or avoid fines are being forced to choose. The decision by KuCoin, which has previously been fined in the US over weak customer checks, shows that compliance is becoming a condition for continuing to operate in major markets. The fact that the exit took effect immediately, with no transition period, points to increased pressure. For users, it is a reminder that access to a platform can be cut off abruptly because of geopolitical or regulatory developments. For European businesses working with exchanges or accepting crypto payments, screening the origin of funds and counterparties against sanctions is an obligation, not an option. The transfer of funds regulation that accompanies MiCA already requires sender and recipient details on every crypto transfer.

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