Why Bybit is blocking Russian users: causes and the role of compliance

Disclaimer: Information from an anonymous source cannot be considered fully reliable. We have sent a request to Bybit representatives for confirmation.

A few weeks ago, Russian users on social media began reporting account blocks by the Bybit exchange. The situation became so widespread that it even drew attention from Russian media. At the same time, Bybit representatives have not rushed to explain the reasons and have kept users in the dark. GetBlock AML Research managed to speak unofficially with a member of the exchange’s team and learn more about the cause of these массовых блокировок.

Which users are being blocked first

According to a compliance team member at Bybit, who requested anonymity, the exchange began blocking user accounts due to violations of international AML standards. Users affected include those who conducted transactions involving the ruble-backed stablecoin A7A5 (under U.S. and EU sanctions) and sanctioned Russian crypto exchanges (such as Grinex, Meer, and others).

The role of the A7A5 stablecoin and sanctions

As the Bybit source notes, using intermediary addresses does not prevent blocks, since the Bybit wallet does not directly support conversion into A7A5. Typically, such operations involve intermediary wallets like Trust Wallet, MetaMask, and others. Bybit’s compliance department closely monitors these patterns and blocks accounts involved in such transactions.

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Why blocks are happening now

After several years of absence, Bybit has decided to return to the U.S. and European markets, the source said. As a result, the exchange’s compliance team has begun strictly following international AML standards, including sanctions imposed on the A7A5 stablecoin and certain Russian crypto exchanges.

Источник: X.com

News about negotiations between Bybit and Coinbase

According to Bloomberg, Bybit plans to reposition itself as a neobank to offer a broader range of crypto services and work with institutional clients globally. On March 18, Bybit announced a partnership with PayPal. The exchange is also planning to partner with Coinbase to enter the U.S. market.