Blockchain.com to freeze crypto accounts of Russians due to EU sanctions

In a letter addressed to its users, Blockchain.com, a crypto-wallet, has mentioned that it will block accounts of Russian citizens starting October 27, 2022.

Blockchain.com will stop offering this service due to the latest sanctions imposed by the European Union.

This change is expected within the next two weeks, according to reports from a local news agency on October 14.

However, the wallet platform provider will continue to allow Russians to withdraw their money until October 27, 2022.

After the given date there will be no chance to get back the money as the accounts will be blocked.

The statement in the letter has focused on the Blockchain.com wallet currently banning custody and reward services to Russian citizens, which is in line with the EU’s eight-pack of sanctions against Russia.

The previous sanctions limited Russian-EU crypto payments to 10,000 rubles ($9,700). The latest package imposes a general ban on cross-border crypto between Russia and the EU.

These sanctions were implemented earlier this month.

Russian accounts were blocked by other crypto wallets

The accounts of Russian citizens were closed by The Dapper, which is a Canadian NFT marketplace. Dapper has stopped the user’s ability to buy, sell, exchange and withdraw tokens and assets from accounts linked to Russia. However, the accounts have not been disabled yet.

Additionally, LocalBitcoins, which is a crypto exchange, has also talked about similar plans to impose certain restrictions.

The restriction included allowing Russia’s customers to only withdraw the cryptocurrencies in one transaction.

Many other major exchanges and peer-to-peer platforms, which include Crypto.com and Coinbase, are also looking to agree to the sanctions.

Along with these crypto exchanges, Binance, which is the world’s largest crypto exchange, has also decided to comply with sanctions.

Binance is currently trying to implement these new restrictions for Russian citizens.

Ambiguity regarding Blockchain.com’s stance

Crypto wallet Blockchain.com’s services also provide more than custody services. The wallet also has a non-custodial wallet.

Non-custodial wallets are designed in such a way that users are meant to have control over their assets, but access to the wallet’s data is not available to the wallet.

Blockchain.com also operates a custodial account with a non-custodial wallet. It allows users to buy and sell crypto on the platform.

It remains unclear whether Russian customers will be able to access their non-custodial wallets on Blockchain.com.

Exchanges such as Bitfinex have previously opposed crypto-sanctions against the Russian people.

Bitfinex also mentioned that they were willing to secure the accounts of all their customers, but their stance may change if ordered by regulators.

Paola Ardoino, the Chief Technology Officer mentioned earlier in 2022,

Our view is that the actions of a government do not necessarily represent the wishes of individuals.