When the Garantex ban, the 2023 shutdown of Russia’s largest peer-to-peer crypto exchange by Russian authorities. Also known as the Garantex closure, it was one of the first times a major crypto platform was forcibly taken offline for failing to meet anti-money laundering rules. Garantex wasn’t just another exchange—it handled billions in trades, mostly in rubles and stablecoins, with almost no user verification. That made it a magnet for money laundering, tax evasion, and sanctions evasion. When Russian regulators finally moved, they didn’t just freeze accounts—they shut down the entire platform and seized assets. This wasn’t a warning. It was a message.
The KYC compliance, the process of verifying a user’s identity before allowing crypto transactions rules that led to Garantex’s fall are now standard everywhere. From South Korea’s $34 billion fine on Upbit to Canada’s $40 million seizure from TradeOgre, regulators are no longer tolerating anonymous crypto trading. The crypto exchange shutdown, the forced closure of platforms that fail to meet legal or security standards is no longer rare—it’s becoming the norm. And users who thought they could avoid identity checks by using offshore or P2P platforms are learning the hard way that regulators can reach even the most decentralized-looking systems.
What’s often missed is how this affects everyday users. Garantex didn’t just vanish—it left thousands with frozen funds, no recourse, and no clear path to recovery. That’s the real cost of using unregulated platforms: you’re not just risking price drops. You’re risking losing everything with no legal protection. The Russian crypto regulation, the tightening of legal controls over digital asset trading within Russia pushed Garantex out, but it also cleared the way for compliant alternatives like Binance and Bybit to dominate the market. Even in countries with looser rules, the global trend is clear: if you don’t verify your identity, you won’t be allowed to trade.
What you’ll find below are real cases—like Upbit’s penalties, TradeOgre’s seizure, and LongBit’s scam—that show how the same forces that took down Garantex are reshaping crypto everywhere. These aren’t isolated incidents. They’re part of a global shift. And if you’re still using an exchange without KYC, you’re playing with fire.
Russia doesn't ban all crypto exchanges, but it blocks those that don't comply with its rules. Garantex and Grinex are sanctioned, Binance and Coinbase are unusable, and only state-approved platforms will survive long-term.