Cryptocurrency restrictions and crypto payment forwarding
Recent events on the world stage have resulted in the application of sanctions, which has limited the use of crypto industry tools in some countries.
The following large European and American companies have completely stopped serving customers from such countries:
Company | Country of origin | Company | Country of origin |
Bitfinex | Virgin Islands | FTX | Bahamas |
Binance | Seychelles | Garantex | Estonia |
Bithumb | South Korea | Gate.io | Cayman islands |
BitMEX | Seychelles | Gemini | USA |
BitStamp | Luxembourg | gopax | South Korea |
Bittrex | Liechtenstein | Korbit | South Korea |
BitZlato | Poland | Kraken | USA |
BTC Alpha | Great Britain | Kuna | Ukraine |
CEX.io | USA, Gibraltar | LocalBitcoins | Finland |
Coinbase | USA | OKex | Malta |
Coinone | South Korea | Poloniex | Seychelles |
Cryptopay | Great Britain | Upbit | South Korea |
Dapper | Canada | whitebit | Lithuania |
At the same time, some of them decided to irretrievably leave cash and crypto assets in their accounts. This list has recently been expanded and Blockhcain.infothe largest crypto payment operator, blockchain explorer and popular wallet.
In order not to lose your funds, use hardware or software wallets with the ability to export private keys – only in this case you manage your funds yourself.
For processing, it is recommended to use non-custodial services or instant transfer (hereinafter referred to as “forwarding”) of payments.
Non-custodial acceptance of payments is the provision by the client of addresses or xpub from HD wallet (BIP32) for transaction tracking and payment notification. Until recently, such services were blockchain.com (sanctions), bitcoin.com, blockonomics.io.
Payment forwarding is an instant transfer from a temporary crypto address provided by the processing service to the address of the recipient, with notifications of the movement of funds at the temporary address. Services: apirone.com, gourl.io, opennode.com.
How does forwarding work?
A temporary address is generated for each payment.
It is needed to identify the order, since the buyer, for example, can pay partially, from different sources and at different times. If you use the same address to receive payments, it will be difficult to determine who, when, for what and how much paid you.
Flaws | Advantages |
Transactions from the client momentarily fall under the control of processing, but at the same time they are not accumulated, but are immediately transferred to the recipient. The network commission is deducted twice: – when making a transaction when paying by the client – removed from the temporary address when transferring to the address of the recipient. | Forwarding is good to use if you want to receive money immediately and have control over it. Also, processing transactions are usually combined with others, which gives a little anonymity (CoinJoin). |
Wallets managed by third parties can be insecure and vulnerable: the payment provider can request KYC verification or even block funds at will.
A vivid example is the consequences of sanctions: processing that prohibits the use of your own money, exchanges that decide not to give away clients’ assets, as well as services that stage a hacker attack and the loss of all client funds.
Forwarding is an intermediate option between custodial and non-custodial processing. This is a great way to quickly start and roll out new projects.
