Another blow to Russian cryptocurrency users, this time from Coinbase

Another blow to Russian cryptocurrency users, this time from Coinbase - GettyImages 1301237611Weeks after Binance (quotation BNB in ​​real time) announced that it is restricting services for Russian citizens, Coinbase (COIN) has sent letters to some Russian accounts to withdraw the funds before it's too late.

In the recent round of EU sanctions on Russia, the EU implemented a ban on deposits to cryptocurrency wallets, making it further difficult for Russians to use cryptocurrencies to evade multiple sanctions.

Coinbase blocks Russian user accounts under EU sanctions

The cryptocurrency exchange Coinbase has sent letters to some Russian accounts, warning customers of possible wallet freezes as a result of the new EU sanctions.

According to local business news RBC, the trading platform has given until May 31 for these users to withdraw their funds. Otherwise, the crypto assets may be frozen and the funds transferred to this account in the future will also be frozen.

The exchange noted that:

"Until May 31, 2022, you must withdraw all funds from your account or provide us with special documents confirming that you do not fall under these penalties."

The announcement supports Coinbase's chief attorney Paul Grewal's post on May 7, noting that the exchange could no longer provide services to Russians who fall within Coinbase's EU divisions or are in the region.

Grewal said affected users will have another opportunity to prove these penalties don't apply to them. He further said:

"If they are covered by the new EU restrictions, we will help them as permitted by law to withdraw their funds from Coinbase."

Binance in the lead

The world's leading cryptocurrency exchange by trading volume Binance, which it called “unethical” to block all Russian client accounts, recently imposed restrictions on Russians, although it hasn't actually placed a ban.

The exchange said in April that users who have cryptocurrencies that exceed the value of 10.000 euros will fall within these limits. Users will be prohibited from making new cryptocurrency deposits as well as trading, including custodial wallets, futures, piles deposits.

Cryptocurrencies have been the only ray of hope for citizens to evade economic sanctions, while Russia is still taking a merciless blow from various nations, especially the EU.