Crypto users are spread across the world and almost everyone has some idea about the market at present. Though this market is not under any regulation, some countries are enforcing some laws on its operation. But, the conditions of Crypto users in Russia are deplorable at current times. After the annexation of many Ukrainian regions by the Kremlin, international communities are stating it was fraudulent activity.
After this, the EU is taking strict action on this matter. All Crypto transactions between Russia and the EU region have been banned. Despite the amount of crypto, digital wallets, or any service, all aspects are under strict prohibition.
Present Situation Of Crypto Users In Russia
The Crypto users of Russia are facing a hard time after the ban. The EU is taking a strict position in this matter as the annexation was not legal. Many international parties are stating it to be a fraud activity. After all of these, the EU has issued a strict prohibition on all types of Crypto transactions or services with Russia. This ban is done based on a package of eight sanctions. The ban applies to every type of digital wallet, service, or amount of tokens.
Also, many exchanges are limiting Russian users on their platforms. LocalBitcoins, which is a P2P exchange, issued penalties a few days back. These penalties will limit the activities of Russian users on the platform. With this, the trading volume of the exchange fell by around 8% this month. But, Russians who are permanent residents or citizens of the EU, have an exemption from these limitations.
The situation is becoming so severe, that this platform even sent an email to a Russian news editor, Dmitry Suharev. The mail stated that he needs to withdraw all his Bitcoin in a single transaction from this platform. And, it was also mentioned that his account would be unavailable soon!
Another incident draws attention to the deteriorating condition of Crypto users in Russia. Here, another exchange, Blockchain.com called D. Chebykin. He works as a leader of human rights organizations. The platform asked him to withdraw all his assets from their service within 2 weeks. He was using these coins to raise funds related to groups that were working for reducing the call-up of citizens of Russia in the ongoing conflict.
In the case of Dapper Labs, the platform is keeping all the Russian accounts to a halt. The owners of these accounts will be unable to carry out any Crypto trading even if the accounts are not deleted.
Sanctions Of the EU Are Making Blockchain Networks Helpless
The businesses are collaborating with the exchanges and enforcing fresh sanctions. The platforms that are offering non-custodial and custodial digital wallets are collaborating with Dapper Labs and LocalBitcoins. With this, they will issue new sanctions on the Russian users that will be executed by the EU. The execution of this sanction will take place on the 27th of October this year.
This sanction is developed as a response to the decision of the Russian government. This decision has a link with the authorization of international Cryptocurrency payments. All the earlier sanctions had a limit of $9,700 capitalization on Crypto transactions. This cap applied to the Russian accounts in the digital wallets which are under EU organizations.
Crypto Firms Will Follow EU Sanctions Soon
Apart from the above-mentioned exchanges, other leading Crypto exchanges like Binance and Coinbase will follow the sanctions soon. Also, these exchanges were not supporting a complete ban of Russian users on the platforms. So, they will ban some particular Russian accounts on their platform.
But, we need to mention that none of these exchanges have these bans at present. And, there are no clear indications of when they will do it.
Putin’s sanction has indeed had a heavy impact on the Crypto users of Russia. The exchanges are putting a ban and limiting the users. They are forced to withdraw their assets from these exchanges. In other words, the situation is very tough for the Crypto users of Russia to sustain in this market.
And, if you are new to this Crypto world, make sure to check out bitcoin circuit. It is an official website that simplifies Cryptocurrency trading.