Crypto Is a ‘Lifeline’ for Russian Citizens, Coinbase CEO Says

Crypto exchanges say they will comply with sanctions but refuse to impose a unilateral ban on Russian accounts

article-image

Blockworks exclusive art by axel rangel

share

key takeaways

  • More users are turning to crypto in Russia as the war in Ukraine intensifies, data show
  • The notion that crypto is being used to avoid sanctions is unfounded, the CEO said

Cryptocurrency exchanges are standing their ground on refusing to unilaterally ban Russian users.

Demand for crypto is building from users in Russia, according to Coinbase CEO Brian Armstrong, a sign that digital assets are providing a safe haven to the country’s sinking ruble.

“Some ordinary Russians are using crypto as a lifeline now that their currency has collapsed,” Armstrong said in a tweet Friday. “Many of them likely oppose what their country is doing, and a ban would hurt them, too.” 

Jesse Powell, the CEO of Kraken, said in a tweet the California-based exchange “cannot freeze the accounts of our Russian clients without a legal requirement to do so.”

The argument that Russian entities would use crypto to sidestep sanctions is unfounded given the open-ledger nature of cryptocurrencies, Armstrong said. Should the US government issue new bans, Coinbase would comply, he added.

Trading volumes between bitcoin and the Russian ruble hit a nine-month high last week, according to data from cryptocurrency research firm Kaiko. Volume on the most popular BTC/RUB trading pair, which trades on Binance, shows the most significant surge since May 2021.

Source: TradingView

Non-US based exchanges have taken a similar stance as Coinbase. Binance, which currently has no official headquarters, will not “unilaterally freeze millions of innocent users’ accounts,” a spokesperson said.

Bahamas-based FTX “plans to continue complying with the laws related to sanctioned countries,” a spokesperson said.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates.png

Research

The convergence of DePIN and energy generation aims to address modern grid challenges by incentivizing distributed generation.

article-image

An improving outlook on tariffs is positive for cryptocurrencies, but a sustained rally is going to take movement on the regulatory front

article-image

Apollo’s Christine Moy explained how the “velocity” of innovation in crypto has led to the evolution of RWAs

article-image

Warren Buffett attributes his astounding investment returns to only about a dozen “truly good decisions” he’s made

article-image

This report has been corrected.

article-image

Stablecoin revenue a bright spot for the crypto exchange in Q1, as trading revenue dropped 19% quarter over quarter

article-image

Creators are being told to “shill” their tokens and cash in on their “cults”