Crypto.Com and Blockchain.Com move to block Russian accounts following EU sanctions
Exchanges Crypto.com and Blockchain.com warn Russian users of office restrictions in response to recent EU sanctions.
Due to its persistent attacks on Ukraine, Russia has been on the receiving end of Western sanctions imposed on the transcontinental country to deter its actions.
The latest batch involved restricting Russian wallets for digital assets to check Russian use of cryptocurrencies as citizens attempt to circumvent previously imposed sanctions. Following this latest batch, exchanges Crypto.com and Blockchain.com are two of the last entities to comply.
Blockchain.com notified its Russia-based users of an impending restriction on their accounts via an email, as first reported by The Block. According to the email, the Luxembourg-headquartered exchange has suspended its detention and reward offers to its Russian clients.
Blockchain.com gave all potentially affected customers until October 27 to withdraw their funds in the respective areas before any restriction is imposed. Affected customers have already been restricted from earning additional rewards as of press time.
According to Blockchain.com, the decision is in line with the recently introduced batch of EU sanctions against Russian citizens regarding digital assets.
Similarly, the Singapore-based exchange Crypto.com has complied with the latest EU sanctions. Despite that, Crypto.com seems to have taken a tougher approach. The exchange has already placed a restriction on Russian wallets, according to information from emails dated 14 October.
The e-mails received by affected Russian citizens from Crypto.com do not provide any withdrawal instructions prior to the implementation of the restriction.
Remember that the EU launched its eighth sanctions against Russia on October 6, as before reported. The sanctions tightened several financial restrictions and completely banned Russian digital asset wallets. Previous sanctions had limited crypto holdings to €10,000 for Russian wallets.
The sanctions were an attempt by the EU to ensure that Russia does not circumvent economic sanctions in traditional finance by exploiting cryptocurrencies and blockchain technology. Despite that, Russia’s CBDC plans remain underway.
Following reports of the latest sanctions, Canada-based blockchain entity Dapper Labs enforced restrictions on Russian wallets, citing compliance with EU sanctions. The platform froze assets stored in Russian wallets on October 7 – a day after the EU imposed the sanctions.
Crypto.com and Blockchain.com are the latest to comply with EU sanctions.
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