According to Russian news agency RBC, which cited an official letter sent to users by Coinbase, the exchange plans to suspend accounts of chosen Russians in order to comply with sanctions.
Coinbase would close accounts after May 31 unless users produced paperwork proving they were not subject to EU penalties, according to the letter.
Users must present which documentation to ensure they are not subject to EU sanctions, according to the exchange.
However, users who fail to furnish the needed documentation will be forced to withdraw their cash from the Coinbase site. Additionally, Coinbase will freeze any payments moved to such accounts after May 31.
This letter comes after Coinbase's Chie Legal Officer, Paul Grewal tweeted that the crypto exchange can no longer provide crypto services to certain Russian customers registered to our EU entities or located within the EU.
He went on to say that the exchange would continue to provide services to non-sanctioned Russian customers who are not based in the EU and are not registered with the exchange's EU businesses.
In doing so, Grewal stated that Coinbase intends to carry out its purpose of economic freedom while adhering to its sanctions commitments.