Crypto: Home stretch for MiCA settlement

Since Russia entered the war with Ukraine, its diplomatic relations with the European Union (EU) have gradually cooled. The European body has multiplied economic sanctions vis-à-vis the Kremlin to asphyxiate it. Initially, the EU opted to limit bitcoin and crypto transactions with Moscow. From now on, the institution intends to go even further by formally prohibiting any transaction from cryptos and bitcoin. The European Commission announced the new measures in a press release.

EU doubles sanctions on Russia

EU commission doubles sanctions against Russia

It is no secret that the war in Ukraine has deteriorated relations between the EU and Russia. Failing to intervene militarily against Moscow, the Western powers found financial measures to contain the Kremlin. Among the economic sanctions adopted was the limitation of transactions made with bitcoins or cryptocurrencies. As Russia steps up maneuvers to homologate cryptos, the EU has decided to play spoilsport.

The Union, for example, provides for sanctions which no longer only limit, but which permanently prohibit transactions in digital currencies in Russia. The EU Commission expressed its satisfaction through a statement : “The Commission welcomes the adoption by the Council of an eighth package of severe sanctions against Russia for its aggression against Ukraine”, could we read in a press release. Before these new sanctions, transactions in bitcoin and cryptos could not go beyond the €10,000. From now on, wallets, custodial abuse in BTC and cryptos are prohibited.

Bitcoin and crypto transactions banned in Russia

This sanction is not insignificant, it follows certain information from Russia. Indeed, the largest country in the world in terms of area would have radically changed its financial policy. Once opposed to the use of bitcoin and other altcoins, the Kremlin is gradually approaching the adoption of cryptos. Indeed, Moscow would have, through the Ministry of Finance, authorized the use of cryptos in the context of cross-border exchanges. A few weeks ago, the Russian Deputy Finance Minister, Alexei Moiseevjustified his country’s sudden interest in digital currencies in these terms: “there is no way to do without cross-border cryptocurrency settlements”.

Currently, the Ministry of Finance and the Russian Central Bank are collaborating for the launch of the digital ruble and the adoption of cryptos in cross-border exchanges. Apart from cryptos, the new sanctions also relate to individuals, as well as the entities of certain regions such as: Donetsk, Luhansk, Kherson and Zaporizhzhia. As a charge against the persons targeted, there is logically a role in “Russian occupation, illegal annexation and the sham “referendums”” in the entities mentioned above.

Ultimately, the EU is toughening up its tone with new measures that go beyond the economic sphere. Furthermore, the body would also have included sanctions relating to defence, military access and the list is not exhaustive.

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