Russian users received emails informing them that their accounts would get blocked in May.
Coinbase, the most prominent US cryptocurrency exchange, warned various (but not all) Russian customers that their accounts may get obstructed later this month. According to Russian media outlets and revealed by the BBC and Bitcoin.com, the trading network has offered to withdraw their funds unless they prove that they are not under financial punishment.
Various Coinbase users from Russia have received letters warning them that their accounts would face an obstruction on May 31. The company suggested that these customers withdraw their funds unless they bring the entity a series of documents highlighting that they are not receiving European Union sanctions.
A post revealed by Russian outlet RBC citing the email highlighted that until May 31, 2022, users must withdraw all funds from their profiles or give clear documents assuring that they are not suffering these sanctions.
The cryptocurrency exchange’s support team alerted the Russians, according to the RBC post, that after that deadline, the funds may get blocked, and all assets that could face a migration to the accounts in the future would also get obstructed.
The news arrived after Coinbase Chief Legal Officer Paul Grewal tweeted in early May that the exchange was no longer in charge of providing services to various Russian customers.
The representative said they could no longer provide services to users with membership in the platform’s EU headquarters or within the European Union region; Grewal had written the same on the company blog.
Grewal expressed that the entity is joining efforts with customers that got harmed by this move to bring them the chance to show whether these punishments do not apply to them or assist them in withdrawing their money from Coinbase if they do.
The representative also explained that the entity would keep providing services to Russian users without sanctions that are not located in the European Union and without registration within their EU entities.
It is not the Only Exchange Making this Move
As outlets mentioned before, other exchanges have been taking similar actions. On April 30, Binance obstructed some users´ accounts close to Kremlin officials. Before this event took place, Binance had expressed that after the punishments against Russia for its war over Ukraine, he would limit the exchange of digital assets for large amounts to citizens and entities operating in that nation.
Let us consider that in a series of financial sanctions backed up by member states in response to Russia’s ongoing conflict over Ukraine, the European Union banned the provision of “high-value” crypto-asset features to Russian entities and citizens.
By: Jenson Nuñez