Due to the sanctions imposed by the European Union, Kraken finally had to resign itself to restricting the accounts of its Russian users. The exchange thus joins the list of centralized platforms that must comply with the measures emanating from the various legislators.
Kraken sanctions its Russian users
krakenone of the largest cryptocurrency exchanges, has finally decided to restrict the accounts of its Russian users.
Indeed, according to an email sent to its customers dated October 19, the platform notified them that they could now only use their account to withdraw their funds. Here is an excerpt from the email in question:
“Due to new European legislation, we need to take action to restrict your Kraken account. […] We will update our support center if there are any changes. […] We apologize for the inconvenience caused. »
Restrictive measures now mandatory for centralized exchanges, given the recent tightening of measures against Russian citizens decided by the European Union at the beginning of October.
At the time of this announcement, the Commission had not specified how it wanted to block access to cryptocurrencies for Russians, but it would seem that the first step is done in accordance with centralized exchanges.
According to a spokesperson for Kraken, the platform is effectively only complying with these recent European measures aimed at prevent the Russians from circumventing the financial sanctions imposed on them :
“Kraken complies with legal and regulatory requirements in all jurisdictions in which we operate. Since the EU announcement, we have worked to make the necessary changes to comply with the latest set of sanctions against Russia. »
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A reluctant decision
Jesse Powell, CEO of Krakenspoke against the grain last February, explaining that he would not resign himself to blocking the accounts of his Russian users in the context of the conflict between Russia and Ukraine, unless binding legal provisions be undertaken, which is the case today.
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 https://t.co/bMRrJzgF8N
— Jesse Powell (@jespow) February 28, 2022
“I understand the merits of this request but, despite my deep respect for the Ukrainian people, Kraken cannot freeze the accounts of its Russian customers without a legal obligation to do so. […] Bitcoin is the embodiment of libertarian values, which strongly promote individualism and human rights. Our mission at Kraken is to take individuals out of the traditional financial system and into the world of cryptocurrency, where arbitrary lines on charts no longer matter, where they don’t have to worry. to be caught up in a vast indiscriminate confiscation of wealth. »
Kraken thus joins the ranks of the various exchanges which have recently been forced to block the accounts of their Russian users, including Crypto.com and Blockchain.com.
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Source: Cointelegraph
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