Crypto Exchange Kraken Pledges over $10 Million to Support Ukrainian Users

Crypto Exchange Kraken Pledges over $10 Million to Support Ukrainian Users

 

Kraken, a crypto exchange based in the United States, is ready to distribute $10 million to Ukrainians. Customers affected by the Russian invasion Clients who opened an account in Ukraine before 9 March, 2022, at the "Intermediate" or "Pro" level of verification, will be eligible for $1,000 in bitcoins (BTC) between March 10 and July 1, the platform stated in a blog post and on social media.

Users from Ukraine will be able to withdraw funds from the exchange quickly, and currency conversion fees for Amounts of up to $1,000 will be eliminated. The first of three proposed tranches will be roughly equal to the total amount paid in fees by Ukrainian citizens since 2013.

There will also be a donation equal to the fees paid by Kraken users in the Russian Federation in the first half of this year. The exchange has stated that it may provide additional assistance in the future.

Commenting on the deepening crisis in Ukraine, Kraken CEO Jesse Powell stated:

'We hope to continue being able to provide critical financial services in a time of need to both our clients in Ukraine and in Russia. Cryptocurrency remains an important humanitarian tool, especially at a time when many around the world can no longer rely on traditional banks and custodians.’

After Moscow launched its offensive in late February, the government in Kyiv urged crypto exchanges to freeze the accounts of Russian users. However, major global platforms, including Kraken and Binance, denied the request to unilaterally impose such restrictions on all traders from Russia. At the time, Powell noted that it was not a viable business option for his company.

Kraken is planning to hand out more than $10 million in aid for clients affected by the military conflict in Ukraine. The amount covers the fees paid by Ukrainian residents for almost a decade and will also include those withheld from Russian traders in the first half of 2022.

Kraken's aid distribution is its first such international initiative and represents efforts to align its business with the values of the crypto community, like the belief that all global citizens should have access to financial services. 

"This includes our clients in Russia, who may be actively protesting the ongoing crisis," the conversation remarked, adding, "We believe this aid program benefits both our company and our clients, ensuring none are disenfranchised by the acts of their representatives and leaders."

Kraken further emphasised that it’s ready to respond to requests from authorities in affected regions and is closely monitoring the situation in Ukraine to ensure it’s abiding by relevant sanctions. The announcement also provides detailed information on how the crypto aid will be distributed and the applicable eligibility requirements.

Ukrainian officials and volunteer groups have actively sought to acquire funding through crypto donations. The digital money raised since the beginning of the conflict has been used to finance both defense efforts and solve humanitarian problems.

The world’s leading crypto exchange by trading volume, Binance, is also supporting the humanitarian efforts in Ukraine, too. The platform has already announced a donation of $10 million for the Ukrainian people, and the Binance Charity Foundation has given Unicef $2.5 million worth of cryptocurrency to address the needs of children and their families in the conflict zone.