Coinbase has reportedly informed some Russian customers that their accounts could be blocked as of May 31. According to Russian media, the leading US crypto platform has offered to withdraw their funds unless they prove they are not subject to EU sanctions.
Coinbase asks Russian users to withdraw their money
Russia’s invasion of Ukraine is impacting all areas, including cryptocurrencies. A report reveals that the crypto platform Coinbase has informed some Russian users that their accounts could be blocked at the end of the month.
The warning only affects certain Coinbase customers in Russia and materialised in an email. The crypto platform advises customers to withdraw their funds or else prove that they are not subject to EU sanctions. If they do, they will be able to avoid having their accounts closed.
The email reads:
Until 31 May 2022, you must withdraw all funds from your account or provide us with special documents confirming that you are not subject to these sanctions.
The US platform warns Russian users that after the deadline, their funds will be frozen and all transfers to and from their crypto accounts will be blocked.
A decision in line with EU sanctions
The European Union is pulling out all the stops to further rein in Russia week after week. In a new round of sanctions approved by member states in response to the war in Ukraine, it has banned the provision of “high-value” crypto asset services to Russian entities and residents.
Coinbase’s decision thus follows a tweet from the company’s general counsel, Paul Grewal, who said on 3 May that the platform could no longer provide services to certain Russian customers subject to EU sanctions:
As a result of the EU’s recent sanctions, @Coinbase can no longer provide crypto services to certain Russian customers registered to our EU entities or located within the EU.
– paulgrewal.eth (@iampaulgrewal) May 3, 2022
Paul Grewal said the platform was working in an educational way with affected customers, helping them either to withdraw their funds if they are affected by EU sanctions or to provide the necessary documentation to show that they are not affected by them.
The company’s aim is not to sanction Russian customers without giving them a choice, by blocking their accounts without delay. Moreover, the services of the US exchange are still open to unsanctioned Russian customers who are not located in the European Union.
Coinbase is not the only platform to have complied with the EU sanctions, as Binance had already decided in April to limit services for Russian users (individuals and legal entities) with more than €10,000 held in cryptocurrencies. Binance even closed Russian users’ accounts linked to the Kremlin and Vladimir Putin without delay.
