EU members discussed the new sanctions that would be applied to European crypto services. This is in light of current tensions in Ukraine. Reports about the tightening have come after earlier this year the Union banned only “high-value” crypto-asset services to Russian residents and companies.
EU To Target Crypto Services For Russians In A New Round Of Sanctions On Ukraine
Russia is facing additional sanctions from the European Union for its announcement of partial mobilization. This was in reaction to Russia’s escalating military intervention and attempts to annexe territories occupied by Ukraine via what are called fraudulent referendums.
With Ursula von der Leyen (President of European Commission) announcing plans to ban Russian imports, as well as any technologies which could be used by the Russian military, the package will impact trade. Also, a price cap on Russian oil will be implemented.
Bloomberg quotes a source who said that the measures also seek to restrict Russians’ access to digital assets, such as cryptocurrency. According to the report, Brussels is trying to stop European companies providing custody, crypto account or wallet services to Russian entities and citizens.
The person requested not to identify herself as the proposal remains confidential. The proposal also calls for cracking down against people trying to bypass the sanctions. It aims to ban EU citizens from high-paying positions in Russian state-owned businesses and punish those and entities that were involved in the recent elections in Ukraine.
The fifth round of EU Council sanctions that were introduced in spring to close loopholes in cryptospace was directed at cryptocurrency. At the time, the European Union prohibited the provision of “high-value” crypto-asset services to Russian entities and residents. The restrictions applied to digital funds exceeding €10,000 (now $9,803).
Moscow has launched a massive military invasion of Ukraine since February. The country has also been given the EU candidate status. Since then, 27 member states have adopted numerous sanctions against Moscow Federation. Each of these sanctions must be approved unanimously by all members in order to be effective.
Are you expecting the European Union (EU) to increase restrictions on crypto-services for Russians or Russian businesses? Please leave your comments below.
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