New Sanctions Prompt Service Changes
Blockchain.com, a prominent crypto wallet provider, has announced it will cease services for Russian nationals in response to the latest sanctions imposed by the European Union. According to an October 14 report from local news agency RBC, the company has informed its users that accounts belonging to Russian citizens will be blocked within two weeks, allowing only withdrawals until October 27, 2022.
Impact of EU’s Eighth Sanctions Package
The recent restrictions are part of the EU’s eighth package of sanctions against Russia, which significantly amplifies previous measures. Unlike earlier sanctions that limited crypto transactions between Russian and EU entities to around $9,700 (or 10,000 euros), this latest package implements a comprehensive ban on all cross-border crypto payment transactions involving Russians.
Services Offered by Blockchain.com
Blockchain.com provides both custodial and non-custodial wallet services, the latter being designed to allow users full control over their assets without the company having access to their data. However, it remains ambiguous whether Russian customers will retain access to their non-custodial wallets on the platform. Blockchain.com has not yet responded to inquiries from Cointelegraph seeking clarification on this matter.
Broader Trend Among Crypto Platforms
Blockchain.com is not alone in restricting services to Russian users in light of the sanctions. Dapper Labs, known for its NFT projects, also suspended accounts for Russian nationals due to compliance with EU regulations. Other major exchanges and peer-to-peer platforms, including Crypto.com and LocalBitcoins, are enacting similar restrictions. A spokesperson from Crypto.com confirmed, “We are fully compliant with EU sanctions,” reinforcing the commitment to adhere to regulatory guidelines.
LocalBitcoins and Trading Implications
LocalBitcoins halted its services for Russian users starting from October 7, affecting all trading and wallet services offered to them. Chief marketing officer Jukka Blomberg noted that Russia represented approximately 8% of the platform’s total trading volumes in September 2022, a decline from 19% in 2020.
Responses from Major Exchanges
Binance, one of the world’s largest cryptocurrency exchanges, is also working diligently to implement new restrictions for Russian users. A company spokesperson emphasized that changes of this nature take time due to the need for coordination with multiple technical and risk management partners to ensure compliance.
Contrasting Stances on Sanctions
A few exchanges, such as Bitfinex, have previously opposed sanctions against everyday Russian citizens, arguing that the actions of a government do not reflect the desires of individual users. Bitfinex’s chief technology officer Paolo Ardoino stated in March 2022 that the firm would protect all customer accounts unless directed otherwise by regulatory authorities.
Conclusion
The response to the EU’s sanctions reflects a broader trend in the cryptocurrency sector, as platforms navigate the regulatory landscape and the implications of compliance. As Blockchain.com and other exchanges adapt to these changes, the restrictions on Russian users highlight the ongoing complexities in the intersection of global politics and the digital asset market.
