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News

by Lubomir Tassev

8 hours ago
 * 
 * 0




EU BANS HIGH-VALUE CRYPTO SERVICES TO RUSSIA IN NEW ROUND OF SANCTIONS




European institutions are closing crypto loopholes for Russia with the latest
package of penalties imposed by the EU over Moscow’s aggression against Ukraine.
The new sanctions prohibit the provision of “high-value” crypto-asset services
to Russian entities and residents.


EU LIMITS RUSSIAN CRYPTO WALLET DEPOSITS TO €10,000

Expanding its sanctions in response to the Russian military assault on Ukraine,
the European Union has again targeted cryptocurrencies. On Friday, the European
Commission, the executive body in Brussels, welcomed the fifth round of
restrictions agreed upon by the Council of the EU. They have been tailored to
“further contribute to ramping up economic pressure on the Kremlin and cripple
its ability to finance its invasion of Ukraine.”

The new Council regulation, published in the Official Journal of the European
Union, bans the provision of “high-value” crypto-asset services to the Russian
Federation. It applies to crypto wallet, account, or custody services for
Russian citizens, other residents, and legal entities established in the
country, if the total value of the digital funds exceeds €10,000 (close to
$11,000). The EU emphasized:

> In view of the gravity of the situation, and in response to Russia’s military
> aggression against Ukraine, it is appropriate to introduce further restrictive
> measures. In particular, it is appropriate to extend the prohibition on
> deposits to crypto wallets.

Similarly, the EU limits fiat deposits by Russian individuals and organizations
but the threshold is much higher, at €100,000. The measures, intended to close
various other loopholes, also ban the sale of banknotes and transferrable
securities denominated in the euro or other official currencies of the EU member
states to Russia and Belarus, Moscow’s closest ally, or to any person or entity
registered there.



The financial restrictions also envisage the freezing of assets, and a full ban
on the transactions of four Russian banks representing a quarter of the
country’s banking sector. In late February, Western allies, including EU members
and institutions, excluded “selected Russian banks” from the SWIFT messaging
network for interbank payments. The European Commission and the Council noted
that the Russian financial institutions are now being “completely cut off from
EU markets.”

TAGS IN THIS STORY

conflict, Council of EU, Crypto, crypto assets, crypto deposits, crypto wallets,
Cryptocurrencies, Cryptocurrency, EU, european commission, European Union,
penalties, restrictions, Russia, russian, Sanctions, Ukraine, War

Do you expect the EU to further strengthen crypto-related sanctions imposed on
Russia over the conflict in Ukraine? Let us know in the comments section below.

LUBOMIR TASSEV

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes
Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides
crypto, blockchain and fintech, international politics and economics are two
other sources of inspiration.





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