Latest EU Sanctions to Curb Access to Crypto Services for Russians

Latest EU Sanctions to Curb Access to Crypto Services for Russians

New sanctions under discussion by EU member states amid the current escalation of the conflict in Ukraine are going to restrict European crypto services for Russians. Reports about the new sanctions are expected after earlier this year the Union banned only "high-value" crypto-asset services for Russian residents and companies.

New Round of EU Sanctions to Target Crypto Services

The European Union is preparing to punish Russia with more sanctions over its decision to announce partial mobilization as part of its escalating military intervention in Ukraine and move to annex occupied Ukrainian territories through what is seen as sham referendums.

The package will hit the market in the first place, with European Commission President Ursula von der Leyen announcing intentions to impose a new ban on Russian imports as well as the export of technologies that could be employed by the Russian military. A price cap for Russian oil is on the table.

The new measures aim to further restrict the ability of Russians to transfer wealth using digital assets like cryptocurrencies, according to Bloomberg, citing reliable sources. Brussels wants to prevent European companies from providing crypto wallet, account, or custody services to Russian citizens and entities, the report reveals.

Jewelry and precious stones are also on the list; the sources added them, asking not to be identified as the proposal is confidential. It also suggests cracking down on people who try to circumvent the sanctions, aims to ban EU nationals from holding high-paying roles in Russian state-owned companies, and punishes individuals and entities involved in staging the recent referendums in Ukraine.

Cryptocurrencies were targeted in sanctions introduced this spring, the fifth round of such measures approved by the EU Council, to close existing loopholes in the crypto space. 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).

Since Moscow launched a full-scale military invasion of neighboring Ukraine in late February, which has been granted the status of a candidate for EU membership, the 27-strong bloc has adopted multiple packages of sanctions against the Russian Federation.