Due to the sanctions imposed by the European Union, Kraken has finally had to resign itself to restricting the accounts of its Russian users. The exchange joins the list of centralized platforms that have to comply with the measures issued by various legislators
Kraken sanctions its Russian users
Kraken, one of the largest cryptocurrency exchange platforms, has finally decided to restrict the accounts of its Russian users.
Indeed, according to an email sent to its customers on October 19, the platform notified them that they could now only use their account to withdraw their funds. Here is an extract from the email in question:
“Due to new European legislation, we must take steps to restrict your Kraken account. [We will update our support centre if there are any changes. [We apologise for any inconvenience caused.
Restrictive measures now mandatory for centralized exchanges, given the recent tightening of measures against Russian citizens decided by the European Union in early October.
At the time of the announcement, the Commission did not specify how it wished to block access to cryptocurrencies for Russians, but it would appear that the first step is being taken in line with centralised exchanges.
According to a Kraken spokesperson, the platform is effectively just complying with these recent European measures to prevent Russians from circumventing the financial sanctions imposed on them:
Kraken complies with legal and regulatory requirements in all jurisdictions in which we operate. Since the EU announcement, we have been working to make the necessary changes to comply with the latest round of sanctions against Russia. “
A reluctant decision
Jesse Powell, Kraken’s CEO, spoke out against the grain in February, saying he would not resign himself to blocking his Russian users’ accounts in the context of the Russia-Ukraine conflict unless binding legal steps were taken, which is what is happening now.
1/6 I understand the rationale for this request but, despite my deep respect for the Ukrainian people, @krakenfx cannot freeze the accounts of our Russian clients without a legal requirement to do so.
Russians should be aware that such a requirement could be imminent. NYKNYC https://t.co/bMRrJzgF8N
– Jesse Powell (@jespow) February 28, 2022
“I understand the merits of this request but, despite my deep respect for the Ukrainian people, Kraken cannot freeze the accounts of its Russian customers without a legal obligation to do so. […] Bitcoin is the embodiment of libertarian values, which strongly promote individualism and human rights. Our mission at Kraken is to take individuals out of the traditional financial system and into the world of cryptocurrency, where arbitrary lines on maps no longer matter, where they don’t have to worry about being caught up in a vast indiscriminate confiscation of wealth. “
Kraken thus joins the ranks of various exchanges that have recently been forced to block the accounts of their Russian users, including Crypto.com and Blockchain.com.
