Kraken follows Crypto.com and ends ties with Russian users

Sahana Kiran
Kraken
Source – Outlook

The crypto-verse was considered to be beyond borders and politics. However, Russia’s attack on Ukraine changed that narrative. An array of crypto platforms came forward and dropped support for Russia. Now, with the involvement of the European Union, more exchanges have come forward and slashed support for the country. Kraken, a prominent crypto exchange emerged as the latest one to do so.

Kraken, the second largest crypto exchange in the US reportedly sent out emails to its Russian customers. On October 19, the firm affirmed that it was halting services.

The email read,

“Due to the new European legislation, we have to take measures to restrict your Kraken account. We will update our support center if there are any changes.”

Last week, Crypto.com and Blockchain.com decided to block users from Russia. While Crypto.com did not reveal information pertaining to withdrawals, Blockchain.com allowed Russians to withdraw both custodial funds and rewards.

Kraken, on the other hand, alerted that Russian users would be able to take out funds by request. However, details about the limit on withdrawals weren’t specified.

Will Crypto be wiped off Russian soil?

Recently, the EU extended the list of restricted items that would aid the Russian Federation’s military and technological enhancement. Crypto fell under this category forcing several exchanges to bid adieu to the region.

Kraken’s spokesperson stated,

“Since the EU’s announcement, we have been working to make the changes needed to comply with the latest package of sanctions against Russia.”

This certainly goes against the ethos of the industry. Another crypto exchange, Bitfinex even went on to retaliate against banning non-sanctioned Russians from accessing crypto. However, the firm was eventually forced to comply with the laws.

With all of these platforms dropping support for Russians, accessing crypto in the country could be challenging. Therefore, the community speculates that access to prominent crypto would soon be nonexistent in the region.