Coinbase would block certain Russian accounts unless they confirm they are out of EU sanctions

Coinbase crypto exchange has sent out letters to certain Russian accounts, warning customers about possible wallet blocks as a result of the fresh EU sanctions. Per the local business news RBC, the trading platform has given time until May 31 for those users to withdraw their funds. Failing which, crypto assets may be frozen and funds transferred to this account in the future will also be blocked.

Coinbase (COIN) has written letters to specific Russian accounts urging them to withdraw assets before it is too late, weeks after Binance (BNB) revealed that it is restricting services for Russian nationals.

Users who fail to furnish the requisite papers will be required to withdraw funds from the Coinbase platform. Failure to do so will result in the funds being frozen by the exchange. Additionally, Coinbase will freeze any payments moved to such accounts after May 31.

The exchange does not define the documentation customers must present to prove they are not sanctioned by the EU.

This letter comes on the heels of Coinbase Chief Legal Officer Paul Grewal tweeting:

The European Union recently imposed a prohibition on deposits to crypto wallets in its latest round of sanctions against Russia, making it much more difficult for Russians to use cryptocurrency to avoid numerous sanctions.

Before Coinbase, Binance introduced restrictions targeting a broader percentage of the Russian population in April. Binance’s restrictions targeted Russian citizens and organizations that hold more than €10,000 ($10,885). Users were barred from making new crypto deposits as well as trading, including custody wallets, futures, and staked deposits.

Binance, the world’s largest crypto exchange by trading volume, has lately imposed limitations on Russians, but not an outright ban, after calling it “unethical” to prohibit all Russian customer accounts.

Cryptocurrencies have been the only ray of hope for the citizens to evade economic sanctions, while Russia is still experiencing a merciless blow from various nations, especially the EU.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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