Coinbase, a leading U.S. cryptocurrency exchange has informed some Russian customers that their accounts could be closed at the end this month. Russian media reports that the platform offered to withdraw funds to customers if they could prove they were not subject to sanctions.
Coinbase asks Russian clients for withdrawal funds
RBC’s crypto news website reported that some Coinbase Russian users received letters informing their accounts they would be shut down on May 31. These customers were advised by the company to withdraw their money unless they provided documents that indicated they weren’t under EU sanctions. The publication quoted the correspondence as explaining:
You must either withdraw all your funds or give us special documentation to confirm you are not subject to these restrictions until May 31, 2022.
After that date, the funds may be frozen and all assets transferred to the accounts in the future will also be blocked, the crypto exchange’s support team warned the Russians, according to the post published by RBC Crypto.
The news of the notice comes after earlier in May, Coinbase’s Chief Legal Officer Paul Grewal tweeted that the exchange could no longer provide services to certain Russian clients registered to the platform’s EU entities or located within the European Union.
Grewal assured that the company is working with affected customers to give them an opportunity to demonstrate if these sanctions don’t apply to them or help them withdraw their funds from Coinbase, if they do. The exchange will still provide services for non-sanctioned Russian customers who aren’t registered in its EU entities and don’t reside within the EU, Grewal stated.
Expanding western sanctions, targeting the Russian government and citizens’ access to global finances, have also affected the crypto space. Coinbase’s move follows Binance’s decision in April to limit services for Russian nationals and companies that have crypto assets exceeding €10,000 (close to $11,000) in value.
The largest crypto exchange by trading volume cited the EU’s latest sanctions as well. In a new round of penalties approved by the member states in response to Russia’s ongoing invasion of Ukraine, the European Union prohibited the provision of “high-value” crypto-asset services to Russian entities and residents.
Are you expecting other cryptocurrency exchanges to adhere to the EU’s latest sanctions against Russia? Please leave your comments below.
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