Kraken Blocks Russian Users, Under EU Sanctions

Kraken, one of the exchanges cryptocurrency "cleanest" in the world, is restricting accounts associated with identities with Russia.

To comply with EU sanctions, Kraken is currently restricting accounts linked to Russia, according to Russian-language emails sent to customers.

But it's not yet clear the extent of the restrictions based on email content alone. A source close to the matter revealed that some users have yet to experience any hurdles to their accounts, although this claim has yet to be verified. Another user said that even though their account was frozen, they were still able to withdraw money from the platform.

The developer of the Yearn decentralized finance platform, Banteg, tweeted that withdrawals are the only feature still active.

kraken has closed accounts for all russian users. the only available feature is withdrawal.

— banteg (@bantg) October 19, 2022

Kraken representative confirmed:

“Kraken complies with legal and regulatory requirements in all jurisdictions in which we operate. Since the EU announcement, we have made the necessary changes to comply with the latest sanctions package against Russia.”

Follow 8th package of sanctions against Russia announced on the evening of October 6, the EU has officially tightened the provision of financial services in Europe to Russian citizens and started banning all wallets, accounts, custody services. cryptocurrency "regardless of quantity".

Thus, Kraken is the latest cryptocurrency platform to "lock" Russian users' access under EU sanctions. Former Kraken CEO Jesse Powell previously responded to Ukraine's call, stating that the exchange would not ban Russian accounts unless explicitly required by law.

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

Last week, Blockchain.com and Crypto.com has begun to enforce similar restrictions and recommends users withdraw funds from the platform. Also, Dapper Labs has frozen NFT of any Russian passport holders and suspects earlier this month. Even though trading is not allowed, users are still entitled to own, transfer and withdraw NFT about non-custodial wallets.