Cryptocurrency Exchanges Begin to Leave Russia

Last week, the European Union extended sanctions on Russia and banned cryptocurrency companies from providing services to Russian citizens. As a result, some brokers are already executing the new orders.

The measure is an alternative to pressure Russia to end the war against Ukraine. At present, the armed conflict has lasted more than 230 days and there is no sign of a ceasefire.

As for cryptocurrencies, they are being studied by the Russian government to evade sanctions. However, as noted above, other countries are trying to close this gap.

Blockchain.com and Crypto.com Leaving Russia

According to information from the Russian portal RBC, the Blockchain.com broker has already warned its users that it will no longer be able to offer services in the country. The series also states that investors have until October 27 to withdraw their cryptocurrencies. After the date, such accounts will be blocked.

“Blockchain.com is currently prohibited from providing escrow services and rewards to Russian citizens”said the broker in a message that RBC has seen.

Currently, Blockchain.com is one of the oldest and largest services in the world. However, the report also cites that both the NFT Dapper marketplace and LocalBitcoins, a P2P exchange, are no longer offering their services to Russians.

Another giant that sticks to the rules is Crypto.com. According to emails TheBlock saw this Friday (14), the US brokerage firm has stopped serving Russian investors. The worrying point is that they may not even have the option to withdraw their savings as such emails do not specify withdrawal deadlines.

So far, neither of the two giants has spoken openly about the matter.

Shutdown of exchanges could affect Bitcoin price in Russia

Since it is more difficult to buy Bitcoin in Russia, Russians may pay a higher price if demand for the asset continues to grow in the region. Therefore, those who already own such a cryptocurrency can take advantage of the moment of external pressure.

The moment recalls the beginnings of this market in Brazil, where importing Bitcoin was difficult and it was possible to find it at a high premium for several periods of time.

At least Russia can mitigate this through mining, a sector also analyzed by the country headed by Vladimir Putin. However, it is worth noting that even pools have to comply with such sanctions imposed by the European Union, but this is far from a complete stop for the Russians.