Russian Accounts Restricted by Crypto.com and Blockchain.com After Sanctions
Top crypto platforms Blockchain.com and Crypto.com have stopped providing services to Russian nationals, urging these users to withdraw their funds as soon as possible. The move comes as a result of recent sanctions by the EU against Russia over its invasion of Ukraine.
Russian Nationals Must Withdraw Their Blockchain.com Funds Before Oct. 27
Crypto exchanges Blockchain.com and Crypto.com informed Russian users they will no longer be able to use custodial and reward services on the platforms. Blockchain.com notified Russia-based users they must withdraw their funds before Oct. 27, after which their accounts will be blocked.
“As a result of EU sanctions, Blockchain dot com is currently restricted from providing custodial and rewards services to Russian nationals. Please withdraw your custodial funds (including rewards) by October 27, 2022, after which date your account will be locked. Effective immediately, rewards accruals are now blocked, but can still be withdrawn by October 27.”– Blockchain.com said in e-mails sent to Russian users
The decision follows the latest sanction package by the European Union (EU) against Russia, introduced earlier this month. Among other things, the latest package includes a” full ban of the provision of crypto-asset wallet, account or custody services to Russian persons and residents, regardless of the total value of those crypto-assets.”
EU’s new sanctions also involve restrictions on the maritime transport of Russian oil to third countries and other trade prohibitions related to steel products, cigarettes, paper, and more. Moreover, the package targets Russia’s media and defense sectors and prohibits providing architectural, engineering, IT consultancy, and legal advisory services to Russian entities and individuals.
Crypto.com, one of the fastest-growing crypto exchanges in the world, already banned Russian users from using the app. However, as opposed to Blockchain.com, Crypto.com did not provide any details on fund withdrawals.
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Dapper Labs Suspends Accounts Linked to Russia Following EU Sanctions
Blockchain.com and Crypto.com were not the first only crypto-related companies to stop providing services to Russian nationals. This month, blockchain gaming company Dapper Labs also suspended accounts linked to Russia as a result of new EU regulations.
The Western leaders have been imposing severe sanctions against Russia following its invasion of Ukraine in February. The dispute between the West and Russia significantly added to inflationary pressures as gas prices skyrocketed over recent months.
Washington was among the first to impose sanctions against Russia, including bans on cryptocurrency transactions and mining. Russia has responded in a similar manner, banning exports of more than 200 goods and prohibiting foreign investors from selling their Russian investments. More recently, the top financial regulator in Russia added Facebook owner Meta to the list of “terrorists and extremists” organizations, according to a report by Interfax.
Do you think crypto adoption would go down in Russia post the new EU sanctions package? Let us know in the comments below.