U.S.-based crypto trading platform Kraken will distribute $10 million to Ukrainian clients affected by the Russian invasion. Clients who opened an account in Ukraine between March 10th and July 1 at the ‘Intermediate or ‘Pro level verification will be eligible for $1,000 in bitcoin ( BTC), according to the platform. This announcement was made via a blog post as well as social media.
Kraken will distribute more than $10 million worth to clients in Ukraine. Recipients of Tranche 1 will receive $1000 in #BTC. This credit can be withdrawn tomorrow. This package is funded from historical Ukraine revenues as well as H1 2022 revenue from Russia-based trading. https://t.co/DdkY2TsVoB
– Kraken Exchange (@krakenfx) March 9, 2022
Users from Ukraine will be able withdraw funds immediately from the exchange, and currency conversion fees up to $1,000 will be waived. The total fees that residents of Ukraine have paid since 2013 will be roughly equal to the first of three tranches.
A donation will be made to cover the Kraken user fees in the Russian Federation during the first half. According to the exchange, it could grant further aid in future. Jesse Powell, Kraken CEO, stated that the Ukraine crisis is getting worse.
We want to be able to continue to offer critical financial services to our clients in Russia and Ukraine in times of need. The use of cryptocurrency is an important humanitarian tool at a time in which many people around the globe can no longer depend on traditional banks or custodians.
The government in Kyiv asked cryptocurrency exchanges to block Russian users’ accounts after Moscow launched its offensive in February. Major global platforms like Binance and Kraken have denied the request to unilaterally impose these restrictions on Russian traders. Powell stated at the time that this was not an option for his company.
Kraken’s aid distribution initiative is the first of its kind. It represents Kraken’s efforts to align itself with the values and ideals of the crypto community. For example, the belief that everyone should have financial services. The exchange added that this includes Russian clients who might be trying to protest the ongoing conflict.
This aid program is beneficial to both our company as well as our clients. It ensures that no one is disenfranchised due to the actions of their leaders and representatives.
Kraken also stated that it is ready to respond any requests made by authorities in the affected areas and is monitoring closely the situation in Ukraine in order to ensure compliance with relevant sanctions. This announcement includes detailed information about how and when the crypto aid will go out, as well as the eligibility requirements.
Officials and volunteers from Ukraine have actively sought funding via crypto donations. Since the start of the conflict, the digital money raised has been used to fund both defense efforts as well as humanitarian issues.
Binance, the world’s largest crypto exchange in terms of trading volume, is also supporting humanitarian efforts in Ukraine. The platform announced a donation worth $10 million to the Ukrainian people, and the Binance Charity Foundation donated Unicef $2.5 millions of cryptocurrency to help children and their families.