European Union Confirmed Crypto Ban of Russian Wallets

The European Union has approved a prohibition on offering crypto services to Russians as part of its tightening sanctions in response to what it considers a fake independence referendum in four Ukrainian regions. As a result of Russian invasion in February, the EU imposed a new round of economic and political sanctions on the country, including a tightening of an existing restriction that restricted crypto transfers to European wallets to €10,000 ($9,900).

The European Commission said in a statement on Thursday that after suggestions it presented last week were approved by EU states, the current limitations on crypto assets have been reinforced by outlawing any crypto-asset wallets, accounts, or custody services, regardless of the size of the wallet.

Russia’s effort to seize the areas of Donetsk, Luhansk, Kherson, and Zaporizhzhia prompted the restrictions, which aim to curb the price of oil that Russia may export. Previous crypto sanctions applied to Russian people, residents, and organizations, unless they were located in the EU, and went into force upon publication in the EU’s Official Journal.

Russian Efforts in the Cryptospace

However, Russia also seems to be making strides in the crypto industry, with the Bank of Russia and the Ministry of Finance working together on a proposed legislation to govern cryptocurrency mining in energy-rich areas. Previously, in a report published at the end of January 2022, the Bank of Russia had called for a complete ban on all cryptocurrency activity, including trading and mining.

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