Russian Crypto Users Face Another Blow, This Time From Coinbase
Key Insights:
Coinbase would block certain Russian accounts unless they confirm they are out of sanctions.
The exchange has given time until May 31 for those users to withdraw funds.
Binance blocked Russian users in April, after the EU’s fresh sanctions against Moscow.
Weeks after, Binance (BNB) announced that it is limiting services for Russian nationals, Coinbase (COIN) has sent letters to certain Russian accounts to withdraw funds before it is too late.
In the recent round of sanctions by the European Union on Russia, the EU has implemented a ban on deposits to crypto wallets, making it further difficult for Russians to use cryptocurrencies to evade multiple sanctions.
Coinbase to block Russian user accounts under EU’s sanctions
Coinbase crypto exchange has sent out letters to certain Russian accounts, warning customers about possible wallet blocks as a result of the fresh EU sanctions.
Per the local business news RBC, the trading platform has given time until May 31 for those users to withdraw their funds. Failing which, crypto assets may be frozen and funds transferred to this account in the future will also be blocked.
The exchange noted:
“Until May 31, 2022, you must withdraw all funds from your account or provide us with special documents that confirm that you do not fall under these sanctions.”
The announcement supports Coinbase chief lawyer Paul Grewal’s post, on May 7, noting that the exchange could no longer provide services to Russians that fall under Coinbase’s EU divisions or located in the region.
Grewal said that affected users will get another opportunity to prove that these sanctions don’t apply to them. He further said:
“If they are covered by the EU’s new restrictions, we will help them as permitted by law to withdraw their funds from Coinbase.”
Binance in the lead
The world’s leading crypto exchange by trading volume Binance, which called it “unethical” to block all Russian customer accounts, has recently imposed limitations on Russians, although not placed an outright ban.
The exchange said in April that users who have crypto assets exceeding the value of 10,000 euros will fall under these boundaries. Users will be barred from making new crypto deposits as well as trading, including custody wallets, futures, staked deposits.
Cryptocurrencies have been the only ray of hope for the citizens to evade economic sanctions, while Russia is still experiencing a merciless blow from various nations, especially the EU.
This article was originally posted on FX Empire