Cryptocurrency exchange CoinZoom has decided to pause new account applications from Russian consumers or consumers currently based in the country.
The Utah-based company has made the decision in the wake of a growing diplomatic rift between Washington and the Kremlin brought on by the war Russia waged in Ukraine on Thursday, February 24.
In light of these events, and the escalating conflict in the country, CoinZoom has decided to suspend its business operations in Russia.
The company has departed from the approach of other exchanges, with the majority including Coinbase, Kraken and Binance resisting such a move, and promoting economic freedom instead.
CoinZoom is not the most prominent crypto exchange out there, but it’s one that has chosen not to equivocate in its actions. Other exchanges said that they would only shut down their services for Russian accounts if they are legally ordered to do so by a regulator.
However, CoinZoom CEO Todd Crosland also made the decision based on pragmatic reasons. He told Reuters that it was not yet clear how Russian account holders (referring to accounts located in the country) would be able to fund them given the fraught international context and the depleting US dollar and Euro reserves in Russia.
The Russian ruble has crashed and is worth less than a cent today. There has also been the news that Visa and MasterCard will no longer operate in the country.
“It's a very fluid situation in Russia right now and it's very fluid with regulators, so being able to fund your account with a wire or a debit card, Mastercard, Visa — all of those funding mechanisms are being basically eliminated for Russian customers right now”, Crosland added. Other exchanges intend to stick to their libertarian values.