According to reports, leading cryptocurrency exchange Coinbase has alerted some Russian customers that their accounts may be suspended before the end of the month. The trading platform has offered them the option of withdrawing their funds unless they can show they are not subject to sanctions, according to Russian media.
As Russian clients are reportedly being asked to withdraw funds from Coinbase some Coinbase users from Russia have received letters informing them that their accounts will be blocked on May 31. The crypto page of the Russian business news portal RBC reported first on the incident. The company suggested that these customers withdraw their funds unless they can provide documents indicating they are not subject to EU sanctions, the publication explained quoting the correspondence, which stated:
Until May 31, 2022, you must withdraw all funds from your account or provide us with special documents that confirm that you do not fall under these sanctions.
BitcoinNews is reporting on the risks of centralized exchange on a regular basis and the coinbase warning is nothing we would not expect to happen at some point in time. Now the time has come for Coinbase users in Russia but soon other exchanges could do the same thing could happen to you even if you are not from Russia.
As if to reinforce the mantra “not your keys, not your coins” Coinbase has reportedly asked some of its Russian users to empty their accounts or face being unable to access “their” currency after May 31.
In an Orwellian glimpse of the future that the EU and its friends want for us, Russian users of coinbase were asked to prove they are not under EU sanctions. That’s an inversion of the incredibly important “innocent until proven guilty” principle. And where will the stolen money go? Nobody is saying!
Experienced bitcoin users know better than to leave coins in an exchange. Running your own node is the most secure way to hold your money, but it’s beyond the skillset of most people. Fortunately, there is an in-between solution in wallets like electrum. These allow you all the benefits of node ownership without the need to actually run one. They do this with a network of node operators who voluntarily allow others to access their verification system.
This warning should be taken seriously by all bitcoin users, not just those who happen to be the current target of the ruling class. If you have bitcoin anywhere that you don’t control, get them out and into a wallet like electrum. Then and only then can you call them “your” coins. Some of us leave some in places where they earn interst, but be aware that at any time you could lose it all.
Political manipulation like this is on the rise. It can be applied to anyone from truckers to bloggers. Any group or individual could easily fall foul of the unpredictable whims of whoever happens to be in power. It”s legalization of theft for a priveledged few,, but we can avoid it. All it takes is a tiny little effort. Satoshi Nakamoto made it easy.