In accordance with penalties imposed by the European Union, Kraken is the most recent cryptocurrency exchange to block accounts of Russian users on its site.
Kraken informed its Russian clients via email on October 19 that the exchange is discontinuing service to Russian clients. The company explained that due to new European legislation; it had to take measures to restrict their Kraken accounts.
Russian Accounts Restricted Indefinitely
If there is a time limit for Russian citizens to withdraw money from the exchange, Kraken didn’t make it clear. According to a Kraken representative, the company complies with the legal and regulatory obligations in all jurisdictions where it conducts business.
The company has been working to implement the necessary improvements since the EU’s statement in order to adhere to the most recent set of sanctions against Russia, the representative said. The most recent restrictions on Kraken are not the exchange’s first experience with regulators ordering centralized exchanges to close down specific accounts.
Kraken Under Pressure to Freeze Accounts
Former Kraken CEO Jesse Powell criticized the Canadian government in February 2022 for blocking cryptocurrency wallets used to finance regional COVID-19 protests. He advised cryptocurrency investors to remove their cryptocurrency from exchanges and directly warned the public that regulators would force Kraken to freeze some wallets. Powell said at the time that users who may have been involved in donating crypto to protestors should avoid keeping their funds with any centralized or regulated custodian.
In accordance with the most recent EU sanctions against Russia, Kraken has restricted Russian customers on its platform, joining the growing list of international cryptocurrency exchanges and wallets that have stopped providing services to Russians. Russian users are finding it increasingly difficult to participate in the global economic landscape as sanctions continue to broaden. Russian reliance on stablecoins to maintain value may also be in jeopardy soon if the political climate does not take a turn for the better.
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