Coinbase Will Block Russian Users

Coinbase advises Russian users to withdraw funds from Coinbase accounts. (Cryptonomist)

JAKARTA – The giant cryptocurrency exchange from the United States, Coinbase, has reportedly given an announcement to its platform users from Russia to withdraw their funds. Coinbase plans to block Russian user accounts from May 31.

According to a report by Russian business media RBC, a number of Coinbase users in Russia have received notification letters that their accounts will be blocked on May 31. Customers are required to show proof they are not subject to economic sanctions from the European Union.

"By May 31, 2022, you must either withdraw all funds from your account or provide us with a special document confirming that you are not subject to this sanction," the announcement reads.

Meanwhile, users who have not withdrawn funds by the specified date will be frozen and their accounts will be blocked. Paul Grewal, Coinbase's Chief Legal Officer, stated in a Twitter post that Coinbase can no longer provide services to certain Russian clients registered on the platform or located in the European Union.

According to a Bitcoin.com News report, Grewal assured that the company is working with affected customers to give them the opportunity to demonstrate that these sanctions do not apply to them. The company also helps them withdraw funds from Coinbase. He also stressed the exchange will continue to provide services to Russian users who are not sanctioned and are not located in the EU.

The decision was the impact of sanctions imposed by the US and the European Union on the Russian economy. Prior to Coinbase, crypto trading giant Binance had also restricted its services to Russian citizens.