EU Bans Crypto Services for Russians in Ukraine Increase New Sanctions
Categories: Crypto News
EU Bans CryptoServices for Russians in Ukraine Increase New Sanctions
EUCouncil Adopts Complete Ban on Crypto Wallets and Custody Services for RussianIndividuals
TheCouncil of the European Union announced new sanctions against Russia in the backdrop of thedeepening military conflict in Ukraine. The penalties came after Moscow tooksteps to annex the Ukrainian regions of Donetsk, Luhansk, Zaporizhzhiya andKherson, expected to hurt the Russian government and economy.
In astatement, the EU's High Representative for Foreign Affairs and Security PolicyJosep Borrell stressed that the sanctions are a response to the latestescalation in these four explosions with a "fake referendum".Russian individuals and entities who have played a role in their organizationwill be particularly targeted.
OtherRussian citizens and businesses are also going to be affected, including those dealingwith cryptocurrencies. The new measures include a complete ban on theprovision of wallet, account or custody services for crypto assets to Russianindividuals and residents. According to the eighth package of sanctions imposedby Brussels, regardless of the value of these assets.
NewEuropean sanctions to hit Russian imports and exports
Whileearlier sanctions were meant to limit the transfer of money via digital assetsand close other loopholes in the crypto space, a recent report revealedthat pro-Russia groups are actively using the cryptocurrency, often To fundparamilitary operations in Ukraine, in small transactions. According toresearch, since the start of the attack in late February, they have raised$400,000 in crypto.
Russianauthorities are also working to allow businesses to employ crypto paymentsfor international settlements. With the latest move, the European Union hasbanned the provision of IT consulting and legal advisory services as well asarchitectural and engineering services for Russia.
Russianimports and exports have also been targeted, including sea transport of crudeoil and petroleum products to third countries. The provision of relatedservices will be permitted only if they have been purchased at or below thepre-established price limit, which is yet to be determined. Other measuresprohibit EU citizens from holding any office on the governing bodies of certainRussian state-owned or government-controlled entities.
The Councilalso decided to broaden the criteria under which individuals can be designatedas prevention facilities for sanctions imposed by the European Union.The European Commission, the executive body in Brussels, welcomed the latestsanctions package.