In a letter addressed to its customers, Blockchain.com, a crypto wallet, has stated that it will shut down accounts of Russian nationals beginning October 27, 2022. Blockchain.com will stop providing this service in light of the most recent sanctions imposed by the European Union.
This change is expected within approximately two weeks, according to reports by the local news agency on October 14. The wallet platform will allow Russians to access their cash up to October 27, 2022.
After this deadline, the account will be automatically closed, and there is no possibility of recovering the money as your funds are locked. The message is focused on the Blockchain.com wallet. The platform currently does not allow custodial or reward services for Russian residents and is in line with the European Union’s 8-pack penalties against Russia.
The previous sanctions restricted cryptocurrency payments between the EU and Russia by a maximum of 10000 rubles ($9,700). The most recent sanctions package prohibits all crypto transactions crossing Russia with the EU. The sanctions were imposed at the beginning of this month.
These accounts belonging to Russian residents were blocked via The Dapper, which is a Canadian NFT market. Dapper has stopped users’ ability to purchase, exchange, sell, or withdraw tokens and assets from accounts associated with Russia. However, the accounts have not been deactivated yet.
Furthermore, LocalBitcoins, a crypto exchange, has also discussed similar plans to put some limitations in place. The restrictions included permitting customers from Russia to withdraw cryptocurrency in one transaction. Other significant exchanges and peer-to-peer platforms, such as Crypto.com and Coinbase, also seek to sign a deal with the sanctions.
In addition to these exchanges, Binance, the world’s largest cryptocurrency exchange, has also decided to adhere to sanctions. Binance is currently working to enforce these new restrictions on Russian citizens.
Exchanges like Bitfinex have previously protested against crypto-related sanctions against the Russian people. Bitfinex added that they were willing to protect the accounts of all of their clients; however, their position could change if regulatory authorities issue a directive.
Paola Ardoino, chief technology officer at Bitfinex, recently said, “We believe that the decisions of a government don’t necessarily reflect the desires of individual citizens.”