Kraken, a leading US-based crypto exchange initially refused requests to block the digital wallet addresses of Russian users following the invasion of Ukraine, has now decided to reverse its policy to comply with EU sanctions.
Once admired for upholding cryptocurrency’s libertarian values, the trading firms send emails announcing it would suspend accounts of Russian clients on its platform, without providing any deadline for funds withdrawal.
Kraken in an email statement wrote,
Due to the new European legislation, we have to take measures to restrict your Kraken account. Russian users would be able to withdraw their funds by request. We will update our support center if there are any changes. We apologize for the inconvenience caused.
On 6th Oct, the EU unleashed the eighth package of hard-hitting sanctions against Russia for its continued aggression against Ukraine by banning all crypto-asset wallets, accounts, or custody services, irrespective of the amount of the wallet [earlier up to €10,000 was allowed].
While some crypto firms have quickly reacted and already suspended operations with Russian accounts, a number of others have continued to operate as usual. Among those are Binance, Coinbase, FTX, etc.
With Kraken forced to abandon its earlier stance, more crypto firms may soon join the list if the war worsens.
A month ago, the San Francisco exchange announced that its outspoken co-founder Jesse Powell would step down and that Dave Ripley, Kraken’s Chief Operating Officer, will take over the CEO role after the firm hires a new COO.
Kraken’s New CEO Eyeing M&A In This “Bankruptcy Environment”
The announcement came amidst the growing feud with regulators like SEC which has been probing Coinbase for listing several tokens on its platform, since the July insider trading lawsuit.
On the other hand, Kraken’s newly appointed Chief Operating Officer Ripley made it clear that it has no plans to remove those tokens from its exchange, despite demands from Sec Chair Gary Gensler for crypto platforms to register.
Besides, Ripley said his firm is looking for new opportunities for mergers & acquisitions in this bear market.
“To the extent that there are opportunities for M&A in this environment, and perhaps if it’s a company that is actually going through a bankruptcy process, then that’s a potential for us to consider for sure,” stated Ripley, adding the company has not made any moves yet.
