CoinZoom is a U.S.-based crypto exchange, is set to cease accepting new accounts from Russia due to the Russian invasion of Ukraine and the most recent economic sanctions imposed against the country.
CoinZoom President Todd Crosland said:
The exchange will be able to access current Russian customers; however, it will screen them against sanctions lists, Reuters reports. The exchange has suspended new accounts because it was unclear how users could pay for their statements, given that critical payment provider from Russia.
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Card companies Visa, Mastercard, and American Express, have all stopped their Russian services, and payment processor Paypal was the latest of its competitors to end the Russian operations.
CoinZoom the first cryptocurrency exchange to prohibit Russian users
CoinZoom is one of the first cryptocurrency exchanges to announce measures that block Russian citizens. Its larger competitors, Binance, Kraken, and Coinbase, have all resisted calls for the blanket ban of Russia and said it was not in line with the decentralized, non-political nature of cryptocurrency.
But the exchanges have agreed to check Russian users in line with the most recent U.S. sanctions. Binance has announced it will cease taking Mastercard and Visa credit cards from Russia as well as Coinbase told it had blocked more than 25,000 Russian accounts it believed were engaged in illegal activities.
However, other cryptocurrency services were viewed as falling to the new sanctions. Ethereum wallet MetaMask was reported to be blocking users in various territories that are disputable in the region between Russia and Ukraine. The NFT platform OpenSea stated that it was bound to abide by U.S. law.
Ukraine demanded in writing crypto exchanges to stop accepting Russian users. They were also able to offer an incentive to the details of the wallets of Russian political leaders. Both of these actions were criticized by the public.
Western nations have effectively excluded Russia from the world’s financial system by removing their access to the SWIFT transactions system. It has led a few Russian citizens to switch to cryptocurrency to safeguard their wealth. The ruble fell to record lows against Bitcoin in recent times, while Russian transactions of the Tether, a stablecoin, skyrocketed.
The initial set of sanctions announced by the U.S. last month saw Russians crowding around ATMs to remove their funds in fear of an imminent default of all the nation’s banks.
Source: Google News Trend