Localbitcoins, Crypto.com, Other Providers Suspend Services for Russians Under EU Rules

In compliance with the latest EU sanctions targeting Russia, well-known cryptocurrency platforms such as Localbitcoins, Blockchain.com and Crypto.com began restricting or terminating services to accounts. The move follows Moscow’s adoption of new European penalties in response to the military escalation in Ukraine.

Leading crypto platforms comply with EU measures and restrict services for Russian users

in the war in Ukraine.

About a week after the European Union introduced another set of measures aimed at hurting Russia’s economy and finances, including access to the crypto market, many service providers in the industry have taken steps to comply with the new requirements. in April, Brussels introduced a new law that requires high value services, namely 10,000 It banned only services for digital assets exceeding €10,000 ($11,000 at the time). Last Thursday, Brussels banned the provision of all crypto-related services to Russian residents and entities, regardless of value.

Localbitcoins, a peer-to-peer exchange platform, has recently been barred from offering services to Russian citizens, Forklog reported. The only exceptions are those who also hold passports issued by the European Economic Area (EU member states and Iceland, Liechtenstein, and Norway) and Switzerland, and those who have permanent residence permits in these jurisdictions.

The crypto news outlet also revealed that wallet operator Blockchain.com has sent a notice to its customers informing them that it cannot offer custodial and rewards services to Russian citizens due to EU sanctions. The company has asked affected users to withdraw their funds by October 27, after which their accounts will be blocked.

Confirming this development, the crypto news page of leading Russian business portal RBC also posted about Crypto.com’s decision to add Russia to the list of countries whose citizens cannot use its services. The crypto exchange, which has over 50 million billed users and is registered in Singapore, recentlyannouncedits intention to establish a regional headquarters in Paris, France.

Another exchange planning to introduce restrictions is Bitmex. U.S.-based Coinbase ensures that it complies with all relevant laws and regulations in the jurisdictions in which it operates. Service providers in other sectors of the crypto industry have already done so. For example, Dapper Labs has suspended operations on non-fiat tokens (NFTs) for Russian accounts. British fintech Revolut does not work in the Russian market at all.

But not all global crypto platforms are compliant with the new European rules. As a recent report announced, major exchanges are still available to Russians. These include Huobi, which said it will maintain stable trading for Russian users; FTX, which operates from the island nation of Antigua and Barbuda; and Okx, Kucoin, and Mexc Global, all registered in the Seychelles. Regional leader Exmo sold its Russian operations to a local operator this spring, and Exmo.me remains active in Russia.

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