Crypto Services Notify Russians of Service Termination Due to EU Sanctions

By Riley ThompsonTechnology News

Crypto Services Warn Russian Users of Service Suspension

Russian users of the P2P platform LocalBitcoins and the crypto wallet operator Blockchain.com have received notifications about the termination of services due to new EU sanctions. The European Commission announced restrictions on investments and other cryptocurrency operations at the end of September this year in response to the “sham independence vote” held in Russian-occupied regions of Ukraine. As experts predicted, these measures are expected to affect most crypto exchanges, including Binance. LocalBitcoins and Blockchain.com appear to be among the first to implement the new bans.

Blockchain.com Informs Russian Users

In a letter to Russian users, Blockchain.com stated:

“As a result of new government sanctions imposed by the EU, Blockchain.com is currently unable to provide custodial services and rewards to Russian citizens. Please withdraw your deposited funds (including rewards) by October 27, 2022, after which your account will be blocked. The accrual of rewards stops immediately, but they can be withdrawn until October 27.

Instructions for withdrawing funds from your trading account can be found here; for withdrawing from Blockchain.com Exchange, see here; and for withdrawing from your Rewards account, see here.

We will continue to keep you updated as we respond to regulatory changes, and we thank you for your patience. If you have any questions or concerns, please let us know by replying to this email.

Sincerely,
The Blockchain.com Team”

LocalBitcoins and Other Platforms

LocalBitcoins did not specify exact dates for the restrictions but noted that citizens and residents of the European Economic Area or Switzerland will still be able to use the platform’s services.

Responses from Other Major Crypto Companies

  • Binance: Did not provide an official comment. However, their support team stated that the exchange has “not introduced any new restrictions” at this time and there are “no changes in existing communications with Russian users.” They added, “Your funds are safe and will remain yours.”
  • Coinbase: Will comply with EU sanctions. A company representative told ForkLog, “Coinbase complies with all applicable laws and regulations in the jurisdictions where it operates, including those related to sanctions.”
  • Crypto.com: Gave a similar response, emphasizing that the company will “fully comply with all EU sanctions.”
  • BitMEX: Also intends to implement measures to restrict individuals and regions included in sanction lists.
  • Revolut: Clarified that it does not provide services in the Russian market.
  • Huobi: Stated that the platform continues to support stable trading for Russian users and that the safety of user assets is their top priority. “If any restrictions are introduced, we will immediately notify users,” the company said.
  • KuCoin and Bybit: Did not respond to ForkLog’s inquiries.

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