announced Blockchain.com platform will begin closing accounts of Russian citizens, after the European Union announced further sanctions against Russia.
Notably, other platforms, such as Binance, are also working to comply with the new sanctions, with changes expected within weeks.
Close Russian accounts
Blockchain.com is the latest company to discontinue its services to Russian citizens, as it looks to comply with the latest sanctions announced by the European Union.
According to one report, the wallet service provider has already informed its users that accounts belonging to Russian citizens will be closed within two weeks.
The report also added that Blockchain.com will give Russian users until October 27, 2022, to withdraw their funds.
And if the funds are not withdrawn by the mentioned date, they will be lost, and the accounts will be banned after that. Blockchain.com stressed that the company is currently prohibited from providing services, whether in storage or rewards, to Russian citizens. The move is in line with the eighth batch of sanctions imposed by the European Union on the country.
Long-range penalties
Previously, sanctions were not far-reaching and only restricted cryptocurrency payments, from Russia to the European Union, within the range of around $9,700 or €10,000.
However, the latest set of sanctions imposed a blanket ban on cross-border cryptocurrency payments between Russian users and the European Union.
Blockchain.com services are not limited to central wallet services only, the platform also operates a decentralized wallet, allowing users to have complete control over their assets, as the company does not have access to their data. In addition, the company also has centralized trading accounts, which allow users to buy and sell digital currencies on the platform.
So far, it remains unclear whether Russian users will be able to retain access to their decentralized wallets on Blockchain.com. The company has not yet commented on this matter.
Other platforms stop services
Blockchain.com isn’t the only platform that has suspended services for Russian users after the latest set of sanctions, as other platforms, Dapper Labs, have also suspended Russian accounts due to the latest EU sanctions.
Both LocalBitcoins and Crypto.com are working to limit or suspend services for Russian citizens in compliance with the sanctions, with a Crypto.com spokesperson stating that the company is fully compliant with EU sanctions.
LocalBitcoins also suspended services for Russian users on October 7, 2022, and suspended trading services. The platform’s chief marketing officer said:
“As a result of the eighth EU-wide sanctions package, we, unfortunately, have to completely restrict the activity of Russian customers on the LocalBitcoins platform.”
The world’s largest cryptocurrency platform, Binance, is also working to implement the new restrictions that came into effect after the sanctions. A spokesperson stated that the platform is working to implement the sanctions:
“Implementing such changes takes time as we have to coordinate carefully with multiple technology partners and manage risks.”
However, some platforms, such as Bitfinex, have opposed sanctions against regular users, and Paolo Arduino, the platform’s chief technology officer, stated:
“Our view is that the actions of the government do not necessarily represent the wishes of individuals.”
He also added that Bitfinex is willing to protect user accounts unless the regulatory authorities that govern them direct otherwise.
Al-Nahda News | Hossam Mohammed