Crypto.com halts service in Russia as the pressure of sanctions on the country keeps increasing. As Russia escalates military action in Ukraine, Europe brings laws that restrict many crypto service providers from offering services in the country. Apart from Crypto.com, even Blockchain.com and Localbitcoins have also started to terminate their services in Russia.
Crypto service providers start halting services in Russia
The European Union has been taking strict steps that are going to hurt Russia’s economy to a great extent. It is an even bigger problem this time because it will limit Russia’s access to the crypto market. Crypto has been a savior till now, allowing citizens to park their money safely as well as do business outside the country. Initial restrictions only banned high-value services worth more than 10,000 Euros, but now all services are banned no matter the amount.
The peer-to-peer trading platform Localbitcoins recently informed Russian citizens that it could no longer provide its services to them, according to Forklog. The sole exemption is for those who have a permanent residency permit in one of the nations that make up the European Economic Area (European Union member states plus Iceland, Liechtenstein, and Norway) or Switzerland and who also possess a passport from one of those nations.
Blockchain.com has also been sending notices to customers that the European Union sanctions are restricting them from providing custodial and reward services in Russia. So, users need to withdraw their funds before 27th October, after which the accounts will be blocked. Many other platforms like Crypto.com, Bitmex, and Coinbase are also following the rules issued by the European Union. They are halting services in Russia.
Not all platforms follow the EU rules
Even though the European Union has brought strict laws to restrict companies from offering services in Russia, not all platforms are following them. Reports suggest that major crypto exchanges are still offering services in Russia. For example, Huobi and FTX, not based out of Europe or the US, offer services in Russia. Even Kucoin, Okx, and Mexc Global are available to users in Russia.
What are your thoughts as Crypto.com and many other major companies halts service in Russia? And do you think the situation will get better? Let us know in the comment below. And, if you found our content informative, share it with your family and friends.
Also Read: Younger generations are 7.5 times more likely to hold crypto: Bank of America survey
