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

Decoding crypto and the markets. Daily, with Byron Gilliam.

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 (10).png

Research

Kamino has evolved into a full-stack asset scaling suite with V2: unlocking new markets, improving capital efficiency, and catering to various risk profiles. We believe it is best positioned to become the credit backbone of Solana as the ecosystem matures. Simply put, KMNO remains our highest-conviction bet in the Solana ecosystem. This report lays out our thesis.

article-image

EigenCloud wants to make crypto-economic guarantees a plug-and-play primitive

article-image

In a new letter, Gemini alleges that the CFTC’s DOE had ulterior motives for 2022 suit

article-image

Sponsored

Neitec’s Debita platform is closing the credit gap by unlocking high-yield private debt in markets that need it most

article-image

From bank porters to stablecoins, the history of money is a story of acceleration

article-image

The Byreal DEX will use both centralized and decentralized liquidity sources to route trades

article-image

Last week’s solana ETF amendments points to “some sort of push from the SEC to get things organized,” a person familiar tells Blockworks.