The Kraken Cryptocurrency Exchange is about to lock its doors to Russian users. The former CEO of Kraken has cautioned crypto investors about the hazards of owning crypto.
Russian customers' accounts on its platform in order to comply with European Union sanctions.
On October 19, Kraken issued an email to its Russian users informing them that the exchange is suspending operations in Russia.
The company said, “we are forced to restrict your Kraken account due to new European regulations.” According to an email statement, “Russian users will be allowed to request withdrawals of their funds.”
“If there are any changes, we will update our help center, and we apologize for the inconvenience.”
Kraken did not clarify whether there is a time limit for Russian nationals to withdraw funds from the exchange. Kraken's representative assured local media outlets that the company complies with all legal and regulatory obligations in all jurisdictions where it operates. “We have been working to make the necessary modifications to comply with the current package of sanctions against Russia since the EU's announcement,” the spokesman stated.
The latest Kraken restrictions are not the first time the exchange has had to contend with authorities forcing centralized exchanges to terminate specific accounts.
Former Kraken CEO Jesse Powell criticized Canadian authorities in February 2022 for freezing crypto wallets used to support local COVID-19 protests. He expressly informed the public that Kraken might be forced by regulators to freeze some wallets, encouraging crypto investors to withdraw their funds from exchanges.
By restricting Russian customers on its platform, Kraken joins the growing list of global crypto exchanges and wallets that have halted servicing Russians in order to comply with the current EU sanctions on Russia.
As previously reported, several crypto companies, including Blockchain.com, Crypto.com, and LocalBitcoins, have halted services for Russians.
The latest crypto sanctions are part of the EU's eighth sanctions package, which was imposed on October 6. The restrictions prohibit any cryptocurrency transactions and payments between Europe-regulated firms and Russian customers. In April, the EU imposed its first crypto sanctions against Russia, prohibiting Russian users or citizens from trading if their holdings surpassed 10,000 euros ($10,000) at the time.
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