Blockchain.com Suspends Russian Crypto Accounts Due to EU Sanctions

Blockchain.com, a cryptocurrency wallet, said in a letter to its users that it will block accounts of Russian citizens from October 27, 2022.

Blockchain.com will stop providing this service due to the latest sanctions imposed by the European Union.

The change is expected within the next two weeks, according to a local news agency report on October 14.

However, wallet platform providers will continue to allow Russians to withdraw funds until October 27, 2022.

After that date, your account will be blocked and you will have no chance of getting your funds back.

The statement in the letter focuses on Wallet Blockchain.com’s current ban on storage and reward services for Russian citizens, which follows the EU’s 8-packet sanctions against Russia.

Previous sanctions limited cryptocurrency payments between Russia and the EU to 10,000 rubles ($9,700). The latest package bans all cross-border cryptocurrencies between Russia and the EU.

These sanctions were implemented earlier this month.

Russian account blocked by other crypto wallet

Accounts of Russian citizens have been closed by The Dapper, a Canadian NFT marketplace. Dapper has suspended the ability for users to buy, sell, exchange, and withdraw tokens and assets from accounts linked to Russia. However, the account has not yet been deactivated.

Additionally, cryptocurrency exchange LocalBitcoins has spoken of similar plans to impose certain restrictions.

This restriction included that Russian clients could only withdraw cryptocurrencies in a single transaction.

A number of other major exchanges and peer-to-peer platforms, including Crypto.com and Coinbase, are also looking to agree to the sanctions.

Along with these cryptocurrency exchanges, Binance, the world’s largest cryptocurrency exchange, has also decided to comply with the sanctions.

Binance is currently working to enforce these new restrictions for Russian citizens.

Ambiguity about Blockchain.com’s stance

Crypto Wallet Blockchain.com’s services also offer more than custodial services. Wallets also have non-custodial wallets.

Non-custodial wallets are designed to allow users to manage their assets, but access to the wallet’s data is not available in the wallet.

Blockchain.com also operates custodial trading accounts in non-custodial wallets. It allows users to buy and sell crypto on the platform.

There is still some ambiguity about whether Russian customers will be able to access Blockchain.com’s unmanaged wallets.

Exchanges such as Bitfinex have opposed crypto sanctions against Russian citizens in the past.

Bitfinex also said it is willing to protect all customer accounts, but their stance could change if there is an order from regulators.

Chief Technology Officer Paola Ardoino mentioned in 2022,

In our view, government actions do not necessarily represent individual wishes.