Market Analysis

EU Bans Provision of Crypto Services to Russia

eu-bans-provision-of-crypto-services-to-russia

Accounts that hold less than €10,000 are no longer exempt from sanctions.

Key Takeaways

  • The EU has announced sanctions against Russia that will ban the provision of all crypto wallets and accounts.
  • Until today, Russian wallets holding less than €10,000 were exempt from similar cryptocurrency sanctions.
  • The EU’s latest batch of sanctions also places limits on imports and exports, military equipment, and oil prices.

The European Union has imposed sanctions that forbid European crypto operations from providing virtually any crypto services to Russians.

Russia Faces Crypto Ban

Russia will lose access to most in the crypto services in the European Union.

On September 6, the EU announced its eighth package of sanctions against Russia in response to its ongoing invasion and annexation of Ukraine.

The EU Council describes the new policy as “a full ban of the provision of… wallets, account or custody services to Russian persons and residents, regardless of the total value of those crypto-assets.”

A separate statement published by the European Commission indicates that related restrictions had been put in place before today, but that wallets holding less than €10,000 ($9,800) had been exempt from those sanctions.

Today’s announcement only names “crypto-asset wallets, accounts, or custody services” as services that cannot be offered to Russian users. However, it seems that crypto exchanges, brokerages, and payment services will be covered by the ban as account-based services.

The sanctions package also contains bans unrelated to cryptocurrency. Specifically, it aims to restrict Russian imports and exports, limit the movement of military equipment, and implement a price cap on Russian oil exports.

The EU Commission said that sanctions are “proving effective” in limiting Russia’s ability to manufacture and repair weapons. It also expressed its support for Ukraine.

Russia, for its part, has been attempting to lift its own restrictions on cryptocurrency usage. This week, Russia’s finance ministry announced plans to allow international cryptocurrency settlements for most industries. The country has been open to that possibility since at least May.

It is unclear whether today’s sanctions will limit those plans, as Russia may plan to transact in crypto outside of the EU.

Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other currencies.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

U.S. Treasury Sanctions Russian Paramilitary Group’s Crypto Wall…

News

The U.S. Treasury has sanctioned five cryptocurrency addresses tied to an extremist Russian paramilitary group. Russian Extremist Group Faces Sanctions A Russian extremist group has had its crypto wallets sanctioned….

Russia May Introduce “Targeted” CBDC by 2023

News

The Bank of Russia, in its latest report, indicated that a digital ruble would be rolled out starting 2023.  Bank of Russia Updates on CBDC Russia is forging ahead with…

Russian Central Bank Open to Crypto For International Payments

News

The Russian Central Bank is open to the idea of cryptocurrencies being used for cross-border settlements, an official stated on Tuesday. The announcement comes as various departments and legislators come…

Click here for the the original source (post)