Blockchain.com blocked cryptocurrency withdrawal, fraud or Decentralization vs centralized finance!
Blockchain.com blocked the withdrawal of funds for the citizens of the Russian Federation, while making it impossible to provide documents confirming a change of citizenship or residence in another country.
But the most interesting thing is that citizens of other countries, such as India, Mexico, Argentina, Kazakhstan, Thailand, Ukraine, Azerbaijan and even Canada………… fell under this “wave”.
Judging by the complaints, everyone has different reasons, someone to re-verify, someone to confirm the legitimacy of funds in the purse, some just without explanation.
And it looks very strange that after all confirmation of the origin of funds and verification, some citizens of India are asked a separate withdrawal fee…
The situation, to put it mildly, is strange, according to experts, the blocked amount is estimated at millions of dollars, and judging by the behavior of Blockchain.com they are very eager to part with this amount.
Similar cases have occurred before, but they have never been of such massive volume.
Now the whole crypto market is wondering if this is too zealous implementation of the law, or we will see Blockchain.com as a new participant in our list of scams : Top Scam Crypto Projects! We would like to point out from ourselves:
Service “purse” blockchain.com — it’s just an interface, and nothing more (well and a little “strange” administration of the project).
If you have seed phrase or private key of your wallet on blockchain.com, you can easily withdraw your cryptocurrency through other wallets.
And no “either scams or bans” will not become an obstacle here, it’s just technically impossible.
In general, we are very sorry that blockchain and crypto-market, becomes similar to regulated financial system, where everything depends on the mood of specific individuals, and on the agreements of certain financial institutions.
Blockchain and cryptocurrencies became what they are because they were independent from external factors, but the market is flooded by centralized projects….
At the same time, it should be noted that now the market is clearly turned in the direction of DEX, and decentralized projects have already come out ahead.
Perhaps, it is the negative consequences for the centralized market of actions like Blockchain.com that will turn the blockchain industry in the direction of decentralization and return the market to the right “rails”.
Ethereum founder Mr. Buterin’s owl comes to mind, referring to both centralized exchanges and other centralized blockchain projects.
“I definitely personally hope that centralized exchanges burn in hell:”
In turn, we recall the types of wallets:
NOT RECOMMENDED FOR USE:
A custodial wallet (centralized) is a service that stores the wallet’s private key, and its “owner” performs transactions exclusively through this service. As a rule, this requires KYC (Know Your Customer).Such wallets are primarily used on cryptocurrency exchanges, which belong to the type of centralized exchanges.
RECOMMENDED FOR USE:
Non-custodial wallet (Decentralized): differs in the fact that the private key or seed phrase is stored or directly with the owner, and for its creation and use there is no need to go through any identification procedures, i.e. there is simply no identification data about the owner of such a wallet.
In this case, it is de facto impossible to restrict its use, you can send a transfer/payment to the address of another crypto wallet directly, and if you need to exchange transactions, use DEX — a decentralized type of exchanges.
For this type of wallet there is no possibility to limit transactions, (although some decentralized exchanges can implement KYC).
Also we urge you to remember about security (read manuals about cold wallets) remember in real blockchain only you are responsible for your funds!
I will not advertise specific names of crypto wallets, you will find a lot of reviews on the Internet.
But remember, when you make transactions with cryptocurrency inside blockchain network, without withdrawing funds to fiat currencies (USD, EUR and others), and you are already asked for KYC, run away from such service, it seems you got not on blockchain market
blockchain, but in some “bank or similar structure” which is just hiding behind the word blockchain.
Decentralization vs. centralization: where is the future?
What do you think?