Cryptocurrency Exchange Bitget Suddenly Exits Russia. What Happened

In mid-October, the cryptocurrency exchange Bitget decided to cease operations for users from Russia, Belarus, and Kazakhstan. These countries were added to the list of jurisdictions with which the platform does not operate. The decision was announced suddenly, and no reasons were provided.

<<Although the Bitget platform continues to operate, we have decided to stop servicing certain users. This is a one-time measure that affects only some users. Those affected by the changes will receive notifications outlining the next steps, corresponding timelines, and procedures for withdrawing funds>>, the exchange stated in its announcement.

For comparison: the exit of the largest cryptocurrency exchange Binance from Russia in 2023 was discussed long before the official announcement. At that time, the exchange was under pressure from U.S. authorities, and information about a possible exit appeared in the media in advance. In early September of the same year, top managers from Binance responsible for Eastern Europe, the CIS, and the Russian market reported on the exit. Only by the end of the month did the exchange officially announce the sale of its Russian business.

The situation with Bitget developed differently. This week, a previously agreed interview with the head of the exchange, Gracy Chen, was supposed to be published on the website <>, but on Friday, the exchange suddenly canceled it, explaining that <>. Late Friday evening, Bitget began sending notifications about the cessation of service for users from Russia, Kazakhstan, and Belarus.

Bitget was founded in 2018 and until recently was popular among Russians. It ranks sixth in the Coinmarketcap rankings with a daily trading volume of around $700 million. In September, Bitget suffered a hack that resulted in losses exceeding $350 million, and the platform is compensating for it from its reserve fund.

There may be several reasons for Bitget's sudden exit, experts surveyed by <> believe. Although the exchange did not directly disclose the grounds for its decision, specialists cite the most obvious ones as sanction risks and increased regulatory requirements. Experts put forward various versions and discussed what alternatives are available for Russians and whether other familiar platforms should be prepared to exit.

Three Problems

The decision by Bitget appears abrupt but logical, according to IT director of <> Vladimir Akimov. He reminded that clients were given only a few days --- from October 18, new trades will no longer be opened, and assets must be withdrawn by 10:00 Moscow time on October 21. At the same time, the exchange reserves the right to close positions itself, restrict withdrawals, and even convert assets into other cryptocurrencies --- waiting until the last day is risky, the expert warned.

The reason is the requirements of regulators and sanctions, says Akimov. In his view, the main factor is the pressure on compliance and licenses: for an international platform, servicing jurisdictions under sanctions becomes more expensive than refusing them.

A region becomes <> for business if the costs of development there become significant. Servicing users from such jurisdictions may require separate checks, processing requests from banks and regulators, monitoring transactions, and additional legal expenses, explained senior analyst of the largest online exchange aggregator Bestchange.ru Nikita Zuborev. According to him, regulation of the cryptocurrency market is being introduced in Russia, and foreign exchanges may view new additional formalities as a significant negative factor.

Sanction pressure and the risk of secondary sanctions also remain obvious reasons, the analyst believes. He noted that the U.S. and EU are constantly tightening rules for cryptocurrency exchanges operating with sanctioned jurisdictions.

<<For Bitget, which aims for global growth and even planned an IPO, the risk of being sanctioned due to servicing Russian clients has become too high. Apparently, the exchange no longer wants to take on the risk of servicing users from the mentioned countries>>, said Zuborev.

It is possible that the exchange's lawyers, considering its business model, deemed the continuation of Russian operations too risky even for the transitional period, agreed Mikhail Uspensky, a member of the expert council on legislative regulation of cryptocurrencies in the State Duma and head of the consulting agency Parallax. This period in Russia is set until July 1, 2027 — until this date, Russians can still conduct crypto operations through foreign platforms, while market participants can adapt to new requirements and obtain licenses.

It is important to note that Russia does not issue classic licenses for crypto exchanges; only exchangers are licensed. For a foreign crypto platform to operate legally within Russia, it needs a cumbersome and hardly easily obtainable license of a "trading organizer" under a separate federal law, the lawyer pointed out.

Among the companies with such a license are the Moscow Exchange, the St. Petersburg Currency Exchange, and the National Commodity Exchange. Given the sanctions agenda, Uspensky believes that a mass movement of large foreign crypto companies in this direction is not to be expected.

Akimov did not rule out that the September hack played a role in Bitget's exit, although the exchange does not confirm this. After major incidents, regulatory scrutiny usually intensifies, and platforms begin to comply more rigorously with all sanction requirements, the expert clarified.

According to Zuborev, despite the exchange's statements that they have enough reserves to cover losses, such an incident sharply increases other risks and depletes reserves for potential future problems. All of this collectively forces the exchange to demonstrate maximum "reliability," including by refusing to work with risky jurisdictions.

"Bitget's Exit is Not the Last"

Russians still have alternatives, but they should be divided into two parts, believes Akimov. In his opinion, a cold wallet remains a good solution for storage, but then all responsibility lies with the owner: they have all the keys, and if they are lost, access to the assets will also be lost.

Cold wallets themselves are not prohibited: the clarification from the Bank of Russia dated October 15 only restricts one route — the transfer from digital accounts of the Russian infrastructure to a non-custodial wallet, the expert added. As for funds stored abroad, the rules of the jurisdiction where they are located apply to them.

If holding assets on an exchange, then loyal jurisdictions will suffice; for example, Belarusian platforms serve Russian clients, the expert reminded. He also noted that foreign exchanges are not being "kicked out" by Russian regulators, but one must prepare for the possibility that other platforms may also leave.
"I think Bitget's exit is not the last, and the next platform may follow suit faster than expected," Akimov said.

He noted that for now, Russians still have other major international exchanges — Bybit, OKX, MEXC, Gate — but the situation is "uneven": somewhere there are targeted checks and freezes, somewhere there are restrictions on new accounts, and the status of any platform can change very quickly.

"At a minimum, it is worth holding assets on several platforms and understanding that you are ready to withdraw them in one day. There are no guarantees here, as in any financial markets: there are only probabilities and sound risk management," the expert warned.

Zuborev noted that one should not forget about decentralized platforms (decentralized exchanges, DEX), which allow exchanges without verifying the affiliation of a particular jurisdiction, although they require the user to have a deeper understanding of technologies and self-management of risks. The direct exit of one exchange is unlikely to noticeably increase the audience of DEX, but indirectly their popularity may grow, especially among those who are tired of transferring funds from exchange to exchange that are closing, the analyst added.

According to Uspensky, familiar crypto platforms may return to Russia in a different form. He did not rule out the emergence of subsidiary exchanges, "directly or indirectly associated with foreign countries."

In September, the popular crypto exchange CoinEx, favored by Russians, announced its closure after nine years of operation. CoinEx founder Haipo Yang stated that the risks associated with cryptocurrency exchanges, related to security and regulatory compliance, are becoming increasingly difficult to control. "Revenues may decline, but responsibility does not. Taking on unlimited risks for limited income is no longer a rational choice," Yang wrote at that time.

"RBC-Crypto" does not provide investment advice; the material is published solely for informational purposes. Cryptocurrency is a volatile asset that can lead to financial losses.

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