Localbitcoins, Blockchain.com, and Other Providers Restricts or Terminates Services for Russian Accounts under EU Sanctions

Complying with the latest EU sanctions targeting Russia, well-known cryptocurrency platforms like Localbitcoins, Blockchain.com, and Crypto.com have started to restrict or terminate services for Russian accounts. The moves follow the adoption of new European penalties in response to Moscow's military escalation in Ukraine.

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About a week after the European Union introduced another set of measures aimed at hurting Russia's economy and finances, including its access to the crypto market, a number of service providers in the industry have taken steps to comply with the new requirements. In April, the bloc banned only high-value services, those for digital assets exceeding €10,000 in value ($11,000 at the time). Earlier this month, Brussels prohibited the provision of all crypto-related services to Russian residents and entities, regardless of the amount.

Localbitcoins, the peer-to-peer exchange platform, has recently told Russian citizens it can no longer offer them its services, as reported. The only exception that can be made is for persons that also hold a passport issued by a country from the European Economic Area (EU member states plus Iceland, Liechtenstein, and Norway) and Switzerland, those who have a permanent residence permit in these jurisdictions.

In addition, the wallet operator Blockchain.com has sent out a notice informing customers that due to the EU sanctions, it's unable to provide custodial and rewards services to Russian nationals. The company has asked affected users to withdraw their funds by October 27, after which date their accounts will be blocked.

Crypto.com, a leading crypto exchange, also decided to add Russia to its list of countries, the citizens of which cannot take advantage of its services. The crypto exchange, with over 50 million claimed users, is registered in Singapore but recently announced its intention to establish a regional headquarters in Paris, France.

Another exchange that plans to introduce restrictions is Bitmex. U.S.-based Coinbase assured it complies with all relevant laws and regulations in the jurisdictions where it operates. Service providers from other sectors of the crypto industry have already done that, too. For example, Dapper Labs​ suspended operations with non-fungible tokens (NFTs) for Russian accounts.