KuCoin ends Russia and Belarus services as exchanges retreat under sanctions

KuCoin discontinued services for users in Russia and Belarus on October 29, citing regulatory compliance without pointing to any specific sanctions. Following similar moves by MEXC and Bitget earlier in October, three major exchanges have restricted these markets within a single month, leaving observers questioning where impacted traders will move their capital.

Currently, that destination remains uncertain. The exchanges have not disclosed how many clients are impacted or the amount of trading volume likely to vanish. Although ongoing withdrawals highlight mounting pressure on international platforms, it is premature to determine whether these actions signal a permanent exit from the Russian and Belarusian markets altogether.

A compliance notice with no named sanction

KuCoin’s announcement was brief and direct: all products and services would end immediately. Impacted clients would receive guidance on closing their positions and withdrawing balances, while users who received no such notification were required to take no action.

By referencing only “applicable legal and regulatory requirements,” KuCoin kept the underlying motivation vague, omitting any mention of specific measures from the United Kingdom or the European Union that forced the decision.

MEXC moved first, Bitget tightened too

MEXC preceded KuCoin in restricting access, announcing on October 20 that it was withdrawing from Belarus and Russia and that affected users would get instructions on liquidating assets and withdrawing funds. Bitget acted even sooner, updating its terms on October 16 to bar users in Kazakhstan, Belarus, and Russia, giving certain impacted customers until October 21 to pull out their money.

However, Bitget clarified that its restrictions applied only to a subset of accounts. Neither MEXC nor Bitget disclosed figures regarding user totals or potential trading volume transfers, making the broader market impact impossible to gauge.

Why Brussels and London keep pressure on

Sanctions help explain the broader context, even if they do not explicitly dictate KuCoin’s specific choice. In April, the EU introduced its 20th sanctions package, prohibiting cryptocurrency transactions involving businesses based in Russia and Belarus. The 21st package on July 23 expanded these measures to cover 14 international crypto firms, opening the door to secondary sanctions—including HTX, as noted by Cryptopolitan.

The UK has likewise intensified its oversight. On October 8, London sanctioned TokenSpot, a Kyrgyzstan-based entity, alongside Xeltox, a company associated with Cryptomus. TRM Labs reported that TokenSpot routed over $950 million toward Garantex, Grinex, and the A7 network. Crucially, these penalties target particular service providers and suspected evasion channels rather than everyday Russian cryptocurrency owners.

Big numbers on both sides of the border

These exchange departures are significant because Russia remains a substantial crypto marketplace. Chainalysis data shows the country took in $376.3 billion in digital assets between July 2024 and June 2025, outpacing Britain’s $273.2 billion. Nevertheless, those figures reflect on-chain transfers rather than exchange-specific trading activity.

According to Deputy Finance Minister Ivan Chebeskov, speaking to TASS, roughly 20 million citizens in Russia utilize cryptocurrency, holding 3.7 trillion rubles across digital assets and related products. Neither metric clarifies how many individuals actively trade on KuCoin.

At the same time, euro-denominated crypto trade volume continues to expand. Kaiko tracked €362 billion in volume for 2025, marking a 31% year-over-year increase. Analyst Laurens Fraussen attributed this expansion partly to the European regulatory environment:

“MiCA’s implementation has driven regulatory confidence, which in turn deepened liquidity and tightened spreads.”

Where the trading could move next

The primary question is where displaced traders will migrate. While Russia is working to establish a domestic, licensed cryptocurrency sector, Chebeskov noted that regulatory timelines stretch out to July 2027, meaning this framework cannot yet absorb the sidelined activity.

Traders might transition to alternative offshore exchanges, decentralized applications, or local intermediaries. Should trading fragment across a broader array of platforms, market liquidity could shrink, spreads widen, and compliance expenses increase.

As of now, however, concrete data showing where this volume has gone or how much liquidity is affected does not exist.

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