The new round of sanctions approved by the European Union prevents Russia from using cryptocurrencies for international payments.
The European Union has approved a new round of sanctions against Russia for the invasion of Ukraine, including the ban on offering cryptocurrency and custody services to Russian accounts, as well as crypto-asset transactions originating from Russian wallets. This is the eighth set of sanctions approved by the European Union against Russia.
The new sanction aims to further limit access to a possible Military and technological financing of the Russian Federation, as well as limiting the development of the defense and security sector, which is key to the continuation of the invasion.
So far, the economic and political sanctions of the European Union have only limited cryptocurrency payments from Russia to European wallets to 10.000 euros. In this regard, the new package completely limits any transaction between a Russian and a European wallet.
The European Union statement highlights that: “existing bans on cryptoassets have been tightened by banning all cryptocurrency and digital asset wallets, accounts or custody services, regardless of the wallet amount.”
Cryptocurrencies, an economic refuge for Russia
Since international organizations began to impose economic sanctions on Russia, Cryptocurrencies have become a haven for the nation.
In late September, Russian Deputy Finance Minister Alexei Moiseev announced that he was allowing the use of Bitcoin and other cryptocurrencies. Cryptocurrencies for international payments, a measure that was taken to try to unblock international trade.
Moiseev also explained that the decision had been made to allow Russian users to have access to digital wallets. At the same time, Russians were also expected to be able to use the cryptocurrency. open their digital wallets within the country, avoiding the use of international exchanges.
During a speech in the Moscow Duma, Anatoly Aksakov, head of the Financial Committee, noted that cryptocurrencies and digital wallets were a key tool for Russia, since financial flows can bypass systems controlled by unfriendly countries.
In fact, cryptocurrencies have become a haven for Russia, which is seeking evade international sanctions.
However, the new ban imposed by the European Union will prevent the country from continuing to use these means to carry out international transactions, which will force Russia to look for alternative means of payment.
[hubspot type=cta portal=20298209 id=38fb28e1-1dc1-40e3-9098-5704ca7fcb07]
