Kraken crypto exchange is next to closed doors for Russian users
Kraken is the latest cryptocurrency exchange to restrict accounts of Russian users on its platform in compliance with EU sanctions.
On October 19th, Kraken sent out emails to its Russian clients to announce that the exchange is suspending services to its Russian clients.
“Due to the new European legislation, we have to take measures to restrict your Kraken account,” the company said. According to an email statement seen by Cointelegraph, Russian users will be able to withdraw their money on demand.
“We will update our support center if there are any changes,” Kraken noted, adding, “We apologize for any inconvenience this has caused.”
Kraken did not specify whether there is a time limit for withdrawing the funds from the exchange for Russian citizens. A spokesperson for Kraken told Cointelegraph that the firm complies with the “legal and regulatory requirements in all jurisdictions” for its business. “Since the EU’s announcement, we have been working to make the changes needed to comply with the latest package of sanctions against Russia,” the representative noted.
The latest restrictions on Kraken are not the first time the exchange has dealt with regulators forcing centralized exchanges to close certain accounts.
In February 2022, former Kraken CEO Jesse Powell condemned Canadian authorities for freezing crypto wallets involved in funding local COVID-19 protests. He explicitly warned the public that Kraken could be forced to freeze some wallets by regulators, and advised crypto investors to move crypto out of exchanges.
“If you’re concerned about that, don’t keep your money with any centralized or regulated custodian. We can’t protect you,” Powell said at the time.
By restricting Russian users on the platform, Kraken joins the growing number of global crypto exchanges and wallets that stopped serving Russians in compliance with the latest EU sanctions against Russia.
As previously reported, several crypto firms, including Blockchain.com, Crypto.com and LocalBitcoin, have ended operations for Russians.
Related: Russian users are welcomed by crypto exchanges in Kazakhstan, but there is a catch
Bitfinex, one of the few exchanges that previously resisted banning non-sanctioned Russians from using its platform, appears to have been forced to comply with the sanctions as well.
“We comply with all regulations to which we are bound and are monitoring this situation closely,” Bitfinex senior PR manager Joe Morgan told Cointelegraph on October 20. Bitfinex Chief Technology Officer Paolo Ardoino previously recommended that investors use non-custodial hardware wallets to better protect their funds.
The new crypto sanctions are part of the EU’s eighth sanctions package which was introduced on 6 October. The sanctions impose a general ban on crypto transactions and payments between European regulated companies and Russian users. The EU initially adopted its first crypto sanctions against Russia in April, restricting Russian users or residents from trading if their holdings exceeded 10,000 euros ($10,000) at the time.
