Key Insights
- OneKey hardware wallet is imposing user restrictions from Russia and other countries including Iran, North Korea, Syria, and more
- Several cryptocurrency exchanges, including Binance and Coinbase, previously introduced restrictions for Russian citizens due to Western sanctions
- Despite sanctions, Russians find ways to access blocked platforms through methods such as purchasing data on the dark web
OneKey hardware crypto wallet will stop accepting new users from Russia from September 30th. This is stated in the message of the company.
In addition to users from Russia, the restrictions will also affect citizens of Iran, North Korea, Syria, North Macedonia, Mainland China, Sudan, Venezuela and Zimbabwe. However, users who have already activated the card will not be affected and will be able to use it normally. OneKey noted that this is done in strict accordance with local laws and regulations.
Our goal is always to provide long-term and stable services to users around the world. It will support more payment scenarios in the future, such as Apple Pay, and physical cards are also planned.
Related: What is WalletConnect? A Complete Guide on How to Use it
OKX closed access to their products
Since February 2022, many cryptocurrency exchanges, following Western sanctions, have introduced restrictions for Russian citizens. In particular, Binance introduced restrictions for citizens of the Russian Federation in April last year, prohibiting transactions on the platform if their balance exceeds €10,000.
Coinbase has blocked thousands of wallets potentially associated with individuals on the sanctions list or involved in illegal activities.
Cryptocurrency exchange OKX later announced that certain Earn product offerings, as well as Shark Fin and Double Investment products, are no longer available to users in Russia. In the presence of open subscriptions, their action was terminated on the date of redemption.
Representatives of the platform did not give a specific answer, which explains the change in their policy. However, they said that they are striving to improve the proposals and “quickly respond to market demands and regulatory requirements.”
Russians circumvent bans
However, the sanctions changes did not prevent the Russians from gaining access to blocked platforms. In particular, they buy data to bypass locks on the dark web.
Related: Bitcoin Conversion into Rubles is Money Laundering in Russia
Also, the number of offers of services for the release of assets of Russian investors blocked on cryptocurrency exchanges has also risen sharply. Such services cost 35-85% of the value of the assets, and often turn out to be fraud.