European Union (EU) Tightens Crypto Restrictions on Russia in a Fresh Set of Sanctions.
The European Union has tightened restrictions on Russian crypto wallets in its eighth package of sanctions on the country.
Russia persists in its severe hostilities towards Ukraine, as Russian forces have launched several offensive actions on the Eastern European country despite a series of repulsions. As Russia annexes Ukrainian territory to advance the war, the EU has launched the eighth package of aggressive sanctions on the country, including its digital currency access.
The EU disclosed this recent wave of sanctions through the European Commission in a press release Thursday. The restrictions with which the EU seeks to restrain the Russian government’s revenue and export liberties introduce an outright ban on the use of digital assets.
The recent sanctions are the European Union’s response to Russia’s annexation of Ukrainian regions as well as its threats of nuclear force.
Per information from the Commission’s press release, the EU banned all Russian digital wallets, restricting them from digital asset products such as custody services provided by mainstream crypto exchanges. This outright ban is a review of the previous €10,000 cap restriction placed on Russian wallets.
“The existing prohibitions on crypto assets have been tightened by banning all crypto-asset wallets, accounts, or custody services, irrespective of the amount of the wallet (previously up to €10,000 was allowed),”.
The European Union realizes the significance of the growing industry of digital assets to Russia amidst these Western sanctions. Consequently, the bloc seeks to restrict the cryptocurrency avenue through which Russia might circumvent economic sanctions.
The United States has already witnessed sanction-ridden Iran set up plans to circumvent economic restrictions crippling its cross-border trades. Two months back, Iran made its first import settled with crypto, worth $10M, as earlier reported.
An Iranian Ministry of Industry, Trade, and Mining official further disclosed that the country plans to make subsequent trades in the foreseeable future.
The outright ban on crypto wallets follows a recent announcement from the Russian Ministry of Finance regarding the country’s use of digital assets. The Ministry revealed Monday that it plans to permit the use of cryptocurrencies for transnational settlements in all industries without restrictions.