EU tightens crypto ban on Russia in fresh round of sanctions

As Russia’s invasion on Ukraine enters its seventh month, the European Union is tightening the grip of its financial sanctions towards the invading nation to incorporate all cryptocurrency wallets and extra.

Particularly, within the eighth bundle of extreme sanctions towards Russia over its aggressive actions in Ukraine, the EU has launched further bans, together with (however not restricted to) cryptocurrency providers, the European Fee mentioned in a press statement on October 6.

Tightening the earlier measures

As per the assertion:

“The prevailing prohibitions on crypto property have been tightened by banning all crypto-asset wallets, accounts, or custody providers, regardless of the quantity of the pockets (beforehand as much as €10,000 was allowed).”

As a reminder, in early April the EU banned the provision of high-value crypto services in Russia as a part of its fifth bundle of sanctions in an try and “shut potential loopholes” and make it tough for rich Russians to “retailer their wealth within the EU,” as Finbold reported.

Elevated scope of the brand new bundle

Along with banning crypto providers, different measures in the newest bundle embody “EU import bans value €7 billion to curb Russia’s revenues, in addition to export restrictions, which can additional deprive the Kremlin’s navy and industrial advanced of key parts and technologies and Russia’s financial system of European providers and experience.”

On prime of that, the brand new bundle consists of IT consultancy, authorized advisory, structure, and engineering providers, that are not to be offered to the Russian authorities or authorized entities established in Russia.

The sanctions additionally embody people and entities “concerned in Russia’s occupation, unlawful annexation, and sham “referenda” within the occupied territories/oblasts of Donetsk, Luhansk, Kherson, and Zaporizhzhia areas,” in addition to “high-ranking and navy officers [and] firms supporting the Russian armed forces.”

Russia’s deal with crypto

Having mentioned that, Russia appears to be making its personal advances within the crypto sector, asserting the collaboration between the Financial institution of Russia and the Ministry of Finance on a draft law that will regulate crypto mining in energy-rich areas.

It is a main flip from the Bank of Russia’s previous policy, introduced in a paper in late January 2022, by which it advocated for a complete ban of cryptocurrencies, crypto trading and mining included.

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