Crypto companies are gearing up to ban digital collectibles’ sale, purchase, or gifts on their platforms due to the recent government sanctions issued by the EU against Russian nationals.
The companies notified their users through emails that they would no longer provide custodial and reward services to Russian customers as the reward accruals are already banned.
According to the Russian news agency RBC report, Blockchain.com has given its users a time limit of two weeks ( till October 27) to withdraw their funds, after which their accounts will be blocked.
The exchange firm is following the EC’s restrictions on the EU’s eighth package of sanctions against Russia, prohibiting them from providing custodial and reward services to Russian residents.
However, the services provided by the platform are not only restricted to custodial services. Blockchain.com runs a non-custodial wallet that enables its customers to control their assets, restricting the company from accessing the data contained in the wallet. Additionally, the firm runs trading accounts that allow users on the platform to buy and sell crypto.
Crypto.com Bows To EU sanctions
Like other crypto firms, Crypto.com has also restricted its services to Russian citizens, which it said is adhering to the imposed EU sanctions.
Crypto news site Watcher Guru didn’t hesitate to break the news through a tweet, saying,
“Crypto.com reportedly begins restricting Russian-based accounts.”
Crypto.com listed Russia among the countries restricted from acquiring its services, and any registration using the Russian phone number does not work on the platform.
Unlike Blockchain.com, Crypto.com did not disclose any information to its customers about the withdrawal of funds, which leaves many investors speculating to have lost their funds. Nevertheless, the firm has already emailed its users, notifying them of their blocked accounts.
The Singapore-based exchange is among the fastest-growing global cryptocurrency firms, with over 50 million users. The firm has expanded its market globally by gaining in-principal approval in various countries to carry out its businesses.
The firm gained regulatory approval early September to offer its services in France. It has taken over crypto by obtaining in-principle licenses from countries like the UK, Italy, and many more.
On October 14, the exchange platform opened a European regional headquarter in Paris and invested to the tune of $146 million to support its operations in the country. The company COO Eric Anziani stated that they look forward to engaging with stakeholders across sectors to help facilitate the new digital economy and provide its customers with a best-in-class crypto experience.
Other Crypto Platforms Restrict Russian Accounts
Other major cryptocurrency firms, such as Dapper Labs, have blocked their services from Russian citizens due to EU restrictions. The company stated that it prohibits them from providing crypto-asset wallet or custody services of any value to accounts connected to Russia and its citizens. However, the firm has closed its accounts as the customers impacted by its actions will continue to view and access their NFTs.
Binance, the world’s largest crypto exchange, is not omitted as it plans to abide by the new sanctions on its platform. The company spokesperson stated that,
“Such changes usually take time. We are currently coordinating with risk management and multiple tech partners to effect the new sanctions.”
Some of the latest sanctions imposed by the EU against Russia include a total ban on the provision of crypto-asset wallets and custody services to Russian nationals, restriction on the maritime transport of Russian oil to third-world countries, and other trade prohibitions like cigarettes, paper, and many more.