Coinbase to Block Russian Customer’s Accounts In Reference With E.U Sanctions

Coinbase, a leading crypto exchange platform has notified some Russian customers about their accounts getting blocked at the end of this month. Russian media reported that several trading platforms are asked to withdraw their funds unless they prove that they are not under sanctions. 

Coinbase, Chief Legal Officer Paul Grewal tweeted earlier in May, notifying the Russian clients located within the European Union or registered to the EU platforms, that the exchanges could no longer provide services to them.

In action to this, some Russian Coinbase users have received letters notifying them about blocking their accounts by May 31, as reported by the Russian business news portal RBC. These customers have to further withdraw their funds unless they prove that they are not subjected to EU sanctions, as quoted by publications:

“Until May 31, 2022, you must withdraw all funds from your account or provide us with special documents that confirm that  fall under these sanctions.”

The Crypto exchanges support team warns Russians according to RBC’s post that, after the due date, their funds may be frozen and the assets transferred to those accounts in the future will be blocked.

Also Read : Cryptocurrency Regulation in Russia-A Pool of Blockchain Development Talent

Further, Grewal assures that he is working with affected customers to help them withdraw money if they fall under E.U sanctions, and also to demonstrate their status in reference to E.U sanctions. Ensures further that the exchanges continue with the same services for the other customers not belonging to E.U sanctions. 

Coinbase’s move is followed by Binance’s decision of limiting services for  Russian nationals and companies having crypto assets valued at more than €10,000. The Russian ongoing invasion of Ukraine resulted in a new round of penalties approved by member states, and the European Union prohibits the “high-value” crypto-asset services to Russian entities and residents.