Blockchain.com closes crypto exchange for Russians due to EU sanctions
Crypto wallet provider Blockchain.com is the latest company to soon stop offering services to Russian citizens due to the latest EU sanctions.
Blockchain.com has notified its users that it will close the accounts of Russian citizens in two weeks, local news agency RBC reported on October 14.
According to the report, Blockchain.com will allow Russian users to withdraw their money until October 27, 2022. After that date, the accounts of Russian citizens will reportedly be blocked.
The statement emphasized that Blockchain.com is currently prohibited from providing custody and reward services to Russian citizens in line with the EU’s eighth sanctions package against Russia.
Unlike previous sanctions, which only limited Russian-EU crypto payments to around $9,700, or 10,000 euros, the latest package imposes a blanket ban on cross-border crypto payments between Russians and the EU. The new sanctions were introduced on 6 October.
Blockchain.com’s services are not limited to custody services. Blockchain.com also runs a non-custodial wallet, which is ideally designed to allow users to fully control their assets while the company does not have access to the wallet’s data. In addition to the non-custodial wallet, Blockchain.com also operates custodial trading accounts, which allow users to buy and sell crypto on the platform.
It remains unclear whether Russian customers will be able to retain access to their non-custodial wallets on Blockchain.com. The firm did not immediately respond to Cointelegraph’s request for comment.
Blockchain.com is not the only platform to halt some services to Russians amid the latest sanctions. Major blockchain developer Dapper Labs also suspended Russian accounts due to the EU’s latest sanctions against Russia and its nationals.
Many other major exchanges and peer-to-peer platforms, including Crypto.com and LocalBitcoins, also plan to limit services for Russian citizens in line with the sanctions. “We are fully compliant with EU sanctions,” a Crypto.com spokesperson told Cointelegraph.
As of October 7, P2P exchange LocalBitcoins stopped offering its services to Russian users, including both trading as well as wallet services, Chief Marketing Officer Jukka Blomberg told Cointelegraph. “As a result of the 8th EU-wide sanctions package, we unfortunately have to completely limit the Russian customers’ activity on the LocalBitcoins platform,” he said.
Blomberg noted that Russian trading volume was about 8% of the firm’s total volumes in September 2022. Russia was once the largest LocalBitcoin market, accounting for 19% of all total BTC trading volumes on the exchange on a monthly basis in 2020.
Related: Russian officials approve use of crypto for cross-border payments
Binance, one of the world’s largest crypto exchanges, is no exception. The company is working around the clock to apply the new restrictions to Russians as well. “Changes like these take time to implement as we need to coordinate closely with multiple technology and risk management partners,” a Binance spokesperson told Cointelegraph.
Some exchanges, including Tether’s sister company Bitfinex, previously opposed crypto sanctions against ordinary Russians. “Our view is that the actions of a government do not necessarily represent the wishes of individuals,” Bitfinex Chief Technology Officer Paolo Ardoino said in March 2022. He added that Bitfinex was willing to protect the accounts of all its customers “unless otherwise instructed by regulatory authorities” by which they are governed.
