Russian accounts restricted by Crypto.com and Blockchain.com after sanctions

Top crypto platforms Blockchain.com and Crypto.com have stopped offering services to Russian citizens, urging these users to withdraw their funds as soon as possible. The move comes as a result of recent EU sanctions against Russia over their invasion of Ukraine.

Russian citizens must withdraw their Blockchain.com funds before October 27

Crypto exchanges Blockchain.com and Crypto.com informed Russian users that they will no longer be able to use custody and reward services on their platforms. Blockchain.com notified Russia-based users that they must withdraw their funds before October 27, after which their accounts will be blocked.

“As a result of EU sanctions, Blockchain dot com is currently restricted from providing custody and reward services to Russian citizens. Withdraw your escrow funds (including rewards) by October 27, 2022, after which date your account will be locked. With with immediate effect, earning rewards is now blocked, but can still be withdrawn by October 27.”

– Blockchain.com said in emails sent to Russian users

The decision follows the latest European Union (EU) sanctions package against Russia, introduced earlier this month. Among other things, the latest package includes a “complete ban on the provision of cryptoasset wallet, account or custody services to Russian persons and residents, regardless of the total value of these cryptoassets.”

The EU’s new sanctions also involve restrictions on sea transport of Russian oil to third countries and other trade bans related to steel products, cigarettes, paper and more. In addition, the package targets Russia’s media and defense sectors and prohibits the provision of architecture, engineering, IT consulting services and legal advice to Russian entities and individuals.

Crypto.com, one of the fastest growing crypto exchanges in the world, has already banned Russian users from using the app. However, unlike Blockchain.com, Crypto.com did not provide any details about fund withdrawals.

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Dapper Labs suspends accounts linked to Russia following EU sanctions

Blockchain.com and Crypto.com were not the only crypto-related companies to stop offering services to Russian citizens. This month, blockchain gaming company Dapper Labs also suspended accounts linked to Russia as a result of new EU rules.

The Western leaders have introduced strict sanctions against Russia after the invasion of Ukraine in February. The dispute between the West and Russia contributed significantly to inflationary pressures as gas prices have skyrocketed in recent months.

Washington was among the first to impose sanctions on Russia, including bans on cryptocurrency transactions and mining. Russia has responded in a similar fashion, banning the export of more than 200 goods and banning foreign investors from selling their Russian investments. Recently, Russia’s top financial regulator added Facebook owner Meta to its list of “terrorist and extremist” organizations, according to a report by Interfax.

Do you think Crypto adoption will decline in Russia after the new EU sanctions package? Let us know in the comments below.

About the author

Tim Fries is the co-founder of The Tokenist. He has a B. Sc. in mechanical engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate in the investment team at RW Baird’s US Private Equity division and is also a co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.