When you think of Kraken, a major global cryptocurrency exchange known for security and compliance. Also known as Kraken Exchange, it was once one of the few platforms that offered serious trading tools to users outside the U.S. But in 2022, Kraken stopped serving customers in Russia, a country that imposed strict controls on foreign crypto platforms and banned unlicensed services. This wasn’t a business decision—it was a legal necessity.
Kraken’s exit from Russia ties directly to global crypto compliance, the set of rules exchanges must follow to avoid fines, sanctions, or shutdowns. After Russia’s invasion of Ukraine, Western governments tightened sanctions, and exchanges like Kraken, Binance, and Coinbase had to cut off access to Russian users to avoid penalties. The U.S. Treasury and EU regulators made it clear: serving Russian customers meant risking your entire business. Kraken didn’t just block accounts—it removed all local payment options, froze withdrawals, and stopped new signups. This move wasn’t unique. Bitsonic, a Korean exchange, also limits access based on region. And just like TradeOgre in Canada or Upbit in South Korea, Kraken learned the hard way that ignoring KYC and AML rules leads to massive fines or total bans.
What does this mean for you? If you’re in Russia, your access to global crypto markets is now limited to unregulated or shady platforms—with no customer support, no insurance, and no legal recourse. If you’re outside Russia, this is a warning: no exchange is immune to geopolitical pressure. Even the biggest names can vanish overnight if they don’t follow the rules. The same compliance that protects you from scams also makes exchanges vulnerable to political shifts. Kraken Russia isn’t just a footnote—it’s a case study in how crypto’s promise of freedom clashes with real-world regulation. Below, you’ll find real examples of exchanges that faced similar fates, scams that popped up in the vacuum, and what you need to know to stay safe when the rules change fast.
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.