• New EU sanctions package brings drastic measures for the crypto industry
• Kraken follows other crypto platforms: accounts of Russian customers suspended
• Procedure outside the EU not clear everywhere
New EU sanctions package passed in early October
As the Council of the European Union announced, “in view of the escalation of Russia’s war of aggression against Ukraine and the illegal annexation of the Ukrainian regions of Donetsk, Luhansk, Zaporizhia and Kherson” the latest, eighth package of sanctions against Russia was passed on October 6, which includes a “A series of drastic measures […] to increase pressure on the Russian government and the country’s economy”, weaken “Russia’s military capabilities” and “inflate the price that the Russian leadership has to pay for the latest escalation”.
advertising
Trade Bitcoin and other cryptos with leverage (long and short)
Bitcoin and other cryptocurrencies have recently corrected significantly. Trade cryptos such as Bitcoin or Ethereum with leverage at Germany’s No. 1 CFD provider and participate in rising and falling prices.
Along with providing a basis for a price cap on Russian oil, an export ban on aviation items and electronic components, and restrictions on the import of Russian goods, another of these drastic measures in the latest EU sanctions package is a total “ban on the provision of crypto-related services wallets, crypto accounts or crypto custody to Russian nationals or residents, regardless of the total value of the crypto assets,” the Council of the EU wrote in a press release
Crypto exchange Kraken has blocked accounts of Russian customers
As news outlet FinanceFeeds reports, in response to these new sanctions against Russia, around two weeks after the latest sanctions package was passed, US crypto exchange Kraken sent out emails to its Russian clients to inform them that the exchange was shutting down its services hires for her.
“Due to new European legislation, we need to take action to restrict your Kraken account. We will update our support center if there are any changes. We apologize for the inconvenience caused,” FinanceFeeds quoted Kraken as saying in a letter addressed to its users . “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 statement said.
Nevertheless, according to FinanceFeeds, the crypto exchange still allows its Russian customers to withdraw their funds – the company has not specified a time limit for this.
More crypto companies are no longer offering their services to Russian nationals
Kraken follows other well-known crypto platforms with this move. According to Blockchainwelt.de, the crypto exchanges Localbitcoins, Blockchain.com and Crypto.com, among others, no longer offer their services to Russian nationals.
On Twitter, a user posted a message from Blockchain.com to a Russian customer in mid-October, in which the crypto exchange asked to withdraw deposit funds (including bonuses) by October 27, 2022, as the accounts were suspended after that.
⚡️Today, Blockchain com’s cryptocurrency platform stopped working with Russian users.
Users of the exchange began to receive reports that the site could no longer provide storage and remuneration services due to new EU sanctions. All accounts will be blocked from the 28th. pic.twitter.com/Kn7TDlF9Os
– FLASH (@Flash_news_ua) October 14, 2022
For Binance, the decision outside of Europe is not yet clear
While the crypto industry in the EU is sticking to the new sanctions against Russia, the situation is not entirely clear for some outside of Europe. For example, Binance CEO Changpeng Zhao told Coindesk that when asked whether Binance will follow decisions by LocalBitcoins, Crypto.com, Kraken and other colleagues to stop offering services to Russian users, he still has no definitive answer. While Binance’s EU entities are complying with sanctions against Russia, the decision is not as clear outside of Europe. “We’ll have to see how things go internationally. We’re waiting for expert recommendations. It’s a difficult situation,” said Zhao, who previously described Russia as a “key market” for Binance.
Editorial office finanzen.net
Image sources: salarko / Shutterstock.com, TierneyMJ / Shutterstock.com