Due to new rules put in place by the European Union, Blockchain.com, which provides services for cryptocurrency wallets, will soon stop serving Russian citizens. On October 14, the Russian news site RBC said that Blockchain.com had told its users that Russian accounts would be closed in two weeks.
The report claims that Russian users of Blockchain.com will have access to their funds until October 27, 2022. It has been stated that Russian citizens’ accounts will be disabled after that date. Due to the EU’s latest set of sanctions against Russia, the statement made it clear that Blockchain.com was not allowed to offer custody and incentive services to Russian citizens at this time.
The old sanctions package only put a limit of about $9,700, or 10,000 euros, on crypto payments between Russia and the EU. The new sanctions package bans all crypto payments between Russia and the EU. On October 6th, the new restrictions came into effect.
The services offered by Blockchain.com are not restricted to custodial ones. Blockchain.com also offers a noncustodial wallet intended to provide consumers with complete ownership over their assets while ensuring that the company has no access to the wallet’s contents. On Blockchain.com, users can buy and sell cryptocurrency through both the noncustodial wallet and the custodial trading account.
The future of Blockchain.com’s noncustodial wallets for Russian users is unknown at this time. In light of the recent restrictions, Blockchain.com isn’t the first platform to suspend some services for Russians.
Crypto.com, Coinbase, and LocalBitcoins are just a few of the big exchanges and P2P platforms that are reportedly going to comply with the fines. One of the top cryptocurrency exchanges, Binance, follows this trend as well. Company employees are putting in long hours to ensure that the new regulations are applied to Russians.
Bitfinex, which is related to Tether, was one of several companies that spoke out against cryptocurrency sanctions against regular Russians.