BitMEX Clamps Down On Russian Users In New Restricted Jurisdictions Policy

Cryptocurrency exchange and derivative trading platform BitMEX has announced that Russians, Russian citizens, and those residing within the European Union (EU) would no longer have access to the platform starting July 11.

BitMex said in an email sent Tuesday to potentially affected customers that it will cease offering its services to Russian citizens or Russians residing within the EU in a move to adhere to the restrictive measures imposed by the EU. With the new restriction, BitMEX users will no longer have access to their accounts, including logging in or using the platform.

The restriction, however, comes with some exceptions. "If you are a resident in the EU or Switzerland or a dual citizen of the EU or Switzerland and reside outside Russia, you may submit additional information to apply for an exemption and continue to access our Services from the EU," BitMEX said in a statement.

It emphasizes that the new restriction does not apply to Russians or residents accessing the platform and its services in Switzerland, dual citizens of the EU or Switzerland and Russians living outside the transcontinental country. Further, the email does not say that the latest restriction affects those residing in Russia.

It is worth noting that BitMEX is not the first cryptocurrency exchange platform to modify its rules regarding Russia and Russian citizens to stay compliant with various restrictions imposed by the EU on Russia. In April, Binance also limited its services to Russian users, which covers not only spot and derivatives trading but also deposits and other wallet services.

At the time, Binance gave users 90 days to close their accounts. But, like BitMEX, the restrictions do not apply to Russian nationals residing outside Russia, provided they can prove their current address.

"While these measures are potentially restrictive to normal Russian citizens, Binance must continue to lead the industry in implementing these sanctions. We believe all other major exchanges must follow the same rules soon," Binance said.

The U.S. and the European Union swiftly responded to Russia's invasion of Ukraine through economic sanctions. In April, the sanctions include banning the SWIFT banking system in Russia and a prohibition restricting high-value crypto asset services to the transcontinental country.