Kraken joins EU sanctions against Russia
Kraken joined the list of crypto platforms that banned Russian users from using their services. The exchange made the relevant decision after the EU agreed on the eighth package of sanctions on October 6.
The latest sanctions require crypto companies regulated by European law to ban all cryptocurrency transactions and payments for Russian users.
On October 19, Kraken announced that they were halting services to its Russian clients by sending the following email:
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. We apologize for the inconvenience caused,Kraken
However, the account holders may request to withdraw their funds, though no time limits for this procedure were mentioned.
Kraken says they responsibly follow the law of each country where they provides services.
“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 makes Kraken one of the cryptocurrency companies collaborating with government regulators. Earlier, Crypto.com, Blockchain.com, and LocalBitcoins reported their support for the EU policy.
Earlier this year, former Kraken CEO Jesse Powell warned investors about the possible freezing of some crypto wallets at the request of regulators. He noted that in the case of official legal instructions, the company would not be able to protect investors.
In the wake of Russia's full-scale invasion of Ukraine, Powell refused to impose restrictions on Russian accounts. In response to the call of Ukraine's Minister of Digital Transformation Mykhailo Fedorov, he tweeted:
“1/6 I understand the rationale for this request but, despite my deep respect for the Ukrainian people, @krakenfx cannot freeze the accounts of our Russian clients without a legal requirement to do so. Russians should be aware that such a requirement could be imminent. #NYKNYC”
Source: Twitter
