In waves, the European Union (EU) has taken sanctions of all kinds against Russia since the invasion of Ukraine. The goal is to stifle the country’s economy. In this logic, the European organization has just adopted a 12th wave of sanctions typically targeting crypto activities carried out by Russians.
Russia bans providing crypto services
The European Union (EU) has strengthened its sanctions against Russia. In particular, it imposed stricter rules on Russian nationals and residents regarding crypto-related activities.
These restrictions, disclosed Monday December 18 by the European Commission, specifically target Russian individuals. They prohibit them from owning or controlling crypto service providers.
In other words, the EU directly targets people of Russian nationality and those residing in the country. They are explicitly prohibited from holding positions within the management bodies of entities providing crypto services.
The EU explains the measure by its desire to amplify the limitations on crypto wallet, account or custody services offered to individuals in Russia. A way for it to stop efforts to circumvent its initial sanctions against the country.
A logical continuation of a crypto restriction imposed a year ago
In October 2022, the EU banned Russian citizens from operating crypto wallets within its borders. The new EU measure can be analyzed as an evolution of this previously imposed geographical restriction.
As a reminder, this measure notably set a ceiling of 10,000 euros for crypto transactions carried out for Russian citizens. A decision that aimed to further limit Russian financial activities in the crypto space.
This was one facet of the EU’s response to the “war of aggression against Ukraine” led by Russia. The community institution having implemented targeted restrictive measures, individual sanctions, economic sanctions. The goal is to prevent the Kremlin from continuing the war.
Almost two years later, the Russo-Ukrainian war is still continuing despite the sanctions, crypto among others, imposed on Russia. It should be noted that the country is not the only one to suffer such sanctions. The EU has notably extended its restrictions to Belarus and Iran.
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