Crypto wallet provider Blockchain.com is the latest company to soon stop providing services to Russian citizens due to the latest EU sanctions.

Local news agency RBC reported on October 14 that Blockchain.com has notified its users that it will close the accounts of Russian citizens within two weeks.

According to the report, Blockchain.com will allow Russian users to withdraw their funds until October 27, 2022. It is reported that after this date, accounts of Russian citizens will be blocked.

The statement highlights that Blockchain.com is currently prohibited from providing guard and reward services to Russian citizens under the eighth round of EU sanctions against Russia.

Unlike previous sanctions that limited crypto payments between Russia and the European Union to about $9,700 or 10,000 euros, the latest package introduces a blanket ban on cross-border crypto payments between Russians and the European Union. New sanctions were imposed on 6 October.

Blockchain.com services are not limited to custodial services. Blockchain.com also uses a non-conservative wallet, which is ideally designed to allow users to have complete control over their assets while the company does not have access to wallet data. In addition to the non-custodial wallet, Blockchain.com also has fiduciary trading accounts that allow users to buy and sell cryptocurrencies on the platform.

It remains unclear whether Russian customers will be able to retain access to their non-custodial wallets on Blockchain.com. The company did not immediately respond to Cointelegraph’s request for comment.

Blockchain.com is not the only platform that has suspended certain services for Russians due to the recent sanctions. Major blockchain developer Dapper Labs has also banned Russian accounts due to the recent European Union sanctions against Russia and its citizens.

Several exchanges and peer-to-peer platforms, including Crypto.com and LocalBitcoins, are planning to limit services to Russian citizens in line with the sanctions. “We are fully compliant with the EU sanctions,” a Crypto.com spokesperson told Cointelegraph.

Since October 7, local bitcoins peer-to-peer exchange has stopped offering its services to Russian users, including trading and wallet services, chief marketing officer Jukka Blomberg told Cointelegraph. “As a result of the eighth EU-wide sanctions package, we are unfortunately forced to completely limit the activities of Russian customers on the LocalBitcoins platform,” he said.

Bloomberg notes that trading volume in Russia was around 8% of the company’s total volume in September 2022. Russia was once LocalBitcoin’s largest market, accounting for 19% of all BTC trading on the exchange per month in 2020.

Related: Russian officials agree to use cryptocurrency for cross-border payments

Binance, one of the largest cryptocurrency exchanges in the world, is no exception. The company is working around the clock to apply the new restrictions to Russians, too. “Changes like this take time to implement as we need to coordinate carefully with multiple technology partners and manage risks,” a Binance spokesperson told Cointelegraph.

Some exchanges, including Tether subsidiary Bitfinex, have opposed the sanctions against ordinary Russians. “We believe that the authorities’ actions do not necessarily reflect the desires of individuals,” said Paolo Arduino, CTO at Bitfinex in March 2022. He added that Bitfinex is ready to protect the accounts of all its clients “unless the regulatory authorities instruct otherwise” that are regulated.

Source: CoinTelegraph

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