Kraken is the latest crypto exchange to restrict accounts of Russian users on its platform in compliance with EU sanctions. On October 19, the company sent an email to its Russian clients announcing that the exchange would stop offering its services in the country.
Due to new European legislation, we are forced to take steps to limit your Kraken account.The company said. According to a statement received via email from Cointelegraph, Russian users will be able to withdraw their funds upon request.
We will update our Help Center if anything changes.Kraken said, adding: “We apologize for any inconvenience.” The company did not specify whether there is a time limit for Russian citizens to withdraw funds from the exchange.
A company spokesperson told Cointelegraph that the company is complying with Legal and regulatory requirements in all jurisdictions. in which you work. “Since the EU announcement, we have been working to make the necessary changes to comply with the latest sanctions package against Russia.” The speaker pointed out.
This is not the first time that Kraken has faced regulators forcing centralized exchanges to close some accounts.
In February 2022, Jesse Powell, former CEO of Kraken, said: He condemned Canadian authorities for freezing wallets involved in funding domestic COVID-19 protests. It has explicitly warned users that regulators may force Kraken to freeze some wallets. He advised investors to keep cryptocurrencies off the exchanges.
“If you’re worried, don’t keep your money in any centralized or regulated warehouse. We can’t protect you.”Powell said at the time.
Powell also responded to Ukraine’s call to block Russian users’ addresses on cryptocurrency exchanges, saying that Kraken would not do so without a legal obligation:
6/1 I understand the motivation behind this request but despite my deep respect for the Ukrainian people, @employee We cannot freeze the accounts of our Russian customers without a legal obligation to do so.
The Russians should realize that such action may be imminent. #nick https://t.co/bMRrJzgF8N
– Jessie Powell (@jespow) February 28, 2022
1/6 I understand the rationale for this request but despite my deep respect for the Ukrainian people, @employee The accounts of our Russian clients cannot be frozen without a legal requirement to do so.
The Russians should realize that such a demand may be imminent. #nick https://t.co/bMRrJzgF8N
– Jessie Powell (@jespow) February 28, 2022
By restricting Russian users on its platform, Kraken joins a growing number of cryptocurrency exchanges and wallets that have stopped providing services to Russian citizens, in accordance with the latest EU sanctions against the country.
As mentioned earlier, many cryptocurrency companies, Including Blockchain.com, Crypto.com, and LocalBitcoinsceased operations with Russian nationals.
It appears that Bitfinex, one of the few exchanges that had previously opposed banning the use of its platform by uncertified Russians, was also forced to comply with the measure.
“We are complying with all the regulations we adhere to and are monitoring the situation closely.”Joe Morgan, senior director of public relations at Bitfinex, told Cointelegraph on October 20. Paolo Ardoino, CTO of Bitfinex, had previously recommended that investors use non-custodial hardware wallets to better protect their funds.
The new sanctions on cryptocurrencies are part of the measures imposed by the European Union on October 6th. The sanctions impose a blanket ban on all cryptocurrency transactions and payments between European-regulated companies and Russian users. The European Union imposed its first cryptocurrency sanctions on Russia in April, restricting Russian users and residents from trading if their holdings exceeded €10,000 ($10,000) at that time.