Kraken Cuts Ties with Russian Users in Compliance With EU Regulations

Kraken Cuts Ties with Russian Users in Compliance With EU Regulations

Yet another crypto exchange is closing its doors to Russian users.

Kraken, a United States–based cryptocurrency exchange established in 2011, has reportedly halted its services to Russia-based users.

According to the reports, on October 19th, Kraken sent emails to its Russian users claiming that in compliance with EU regulations, the company is no longer able to provide crypto services to Russians.

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In its email, Kraken stressed that users will be able to retrieve their funds after filing the request. However, did not indicate the time frame for these requests, only added: “we will update our support center if there are any changes.”

Kraken is not the only crypto company complying with the newest sanction package issued by the European Union. Russians are also restricted from using Blockchain.com, Crypto.com, LocalBitcoins, and Dapper Labs.

Blockchain.com allowed Russian customers to revoke their custodial funds and rewards. On the other hand, Crypto.com didn’t provide any information about customers being able to withdraw their funds.

When asked about compliance with EU regulations, a Kraken spokesperson noted:

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

Kraken finished its email by apologizing to users for the inconvenience.

It is worth noting that even the most Russia-friendly crypto companies are forced to comply with EU regulations. Crypto exchange Bitfinex was opposing the idea of banning non-sanctioned Russians from accessing crypto services. However, now, Bitfinex’s senior PR manager, Joe Morgan, stated:

We comply with all the regulations under which we are bound and are monitoring this situation closely.

The eighth EU sanction package issued on October 6th prohibited any crypto transactions or payments between Russian users and EU-regulated companies

Gile K. - Crypto Analyst

by Gile K. - Crypto Analyst, BitDegree


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