According to reports, leading cryptocurrency exchange Coinbase has alerted some Russian customers that their accounts may be suspended before the end of the month. The trading platform has offered them the option of withdrawing their funds unless they can show they are not subject to sanctions, according to Russian media.
Russian clients are reportedly being asked to withdraw funds from Coinbase
According to the crypto page of the Russian business news portal RBC, some Coinbase users in Russia have received letters alerting them that their accounts will be suspended on May 31. According to the magazine, the corporation proposed that these customers remove their funds unless they submit paperwork demonstrating that they are not subject to EU penalties.
You must either withdraw all funds from your account or present us with additional paperwork proving that you are not subject to these sanctions until May 31, 2022.
According to a post published by RBC Crypto, after that date, the money may be frozen, and all future assets moved to the accounts would also be prohibited, according to the crypto exchange’s support team. The warning comes after Coinbase’s Chief Legal Officer Paul Grewal tweeted earlier this month that the exchange would no longer be able to provide services to certain Russian clients who were registered with the platform’s EU businesses or who were based in the European Union.
Grewal told clients that the business is working with them to demonstrate that the penalties do not apply to them or to assist them in withdrawing their assets from Coinbase if they do. He also stated that the exchange will continue to provide services to non-sanctioned Russian users who do not reside in the EU and are not registered with the exchange’s EU businesses.
The crypto sphere has been impacted by the expansion of western sanctions targeting the Russian government and residents’ access to global finances. Coinbase’s move follows Binance’s decision in April to restrict services to Russian nationals and businesses with crypto assets worth more than €10,000 (about $11,000).
The EU’s fresh penalties were also mentioned by the largest crypto exchange by trade volume. The European Union has banned the provision of “high-value” crypto-asset services to Russian organisations and residents as part of a fresh wave of sanctions adopted by member states in reaction to Russia’s ongoing invasion of Ukraine.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
