According to Russian business news portal RBC, some Coinbase users in Russia have received letters alerting them that their accounts would be blocked on May 31. According to the news portal, Coinbase proposed that these users should remove cash from their wallet unless they submit paperwork demonstrating that they are not subject to European Union (EU) penalties.
According to a post published by RBC Crypto, after May 31, the money may be frozen, and all future assets moved to the accounts would also be prohibited. The warning comes after Coinbase’s Chief Legal Officer, Paul Grewal, tweeted on May 3 that “Coinbase can no longer provide crypto services to certain Russian customers registered to our EU entities or located within the EU”.
As a result of the EU’s recent sanctions, @Coinbase can no longer provide crypto services to certain Russian customers registered to our EU entities or located within the EU.
— paulgrewal.eth (@iampaulgrewal) May 3, 2022
As per the announcement:
“Until May 31, 2022 you must withdraw all funds from your account or provide us with special documents that confirm that you do not fall under these sanctions.”
Grewal told the users that business is working with them to establish that the EU penalties do not apply to them or to assist them in withdrawing their assets from Coinbase if they do so. 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 EU has banned the supply of “high-value” crypto-asset services to Russian organisations and individuals as part of a fresh wave of sanctions adopted by member states in reaction to Russia’s ongoing invasion of Ukraine.
Read more:
- Binance blocks accounts linked to relatives of Russian officials
- Crypto might not save Russia from sanctions: Moody’s Investors Service
