Crypto: The EU Imposes New Sanctions Against Russia

Wave by wave, the European Union (EU) has taken various sanctions against Russia since the invasion of Ukraine, with the goal of suffocating the country’s economy. In this context, the European organization has just adopted a 12th wave of sanctions specifically targeting crypto activities conducted by Russians.

Russia barred from providing crypto services

The European Union (EU) has intensified its sanctions against Russia. Notably, it has imposed stricter rules on Russian nationals and residents regarding crypto-related activities.

These restrictions, disclosed on Monday, December 18th by the European Commission, specifically target Russian individuals. They prohibit them from owning or controlling crypto service providers.

In other words, the EU is directly targeting individuals of Russian nationality and those residing in the country. They are explicitly forbidden from holding positions within the governing bodies of entities providing crypto services.

The EU explains this measure by its desire to amplify limitations on crypto wallet, account, and custody services offered to individuals in Russia. This is a way for it to thwart efforts to circumvent its initial sanctions against the country.

#EU sanctions Russians from owning crypto #businesses pic.twitter.com/AsgaS3WNGT

— Crypro Man (@Dr_Crypto_man) December 19, 2023

A logical continuation of a crypto restriction imposed a year ago

In October 2022, the EU prohibited Russian citizens from operating crypto wallets within its borders. The new EU measure can be seen as an extension of this previously imposed geographical restriction.

As a reminder, that measure had notably set a ceiling of 10,000 euros for crypto transactions conducted by Russian citizens. A decision aimed at further limiting Russian financial activities in the crypto space.

It was one of the aspects of the EU’s response to Russia’s “war of aggression against Ukraine” initiated by Russia. The community institution had implemented targeted restrictive measures, individual sanctions, and economic sanctions. The goal was to prevent the Kremlin from continuing the war.

Nearly two years later, the Russo-Ukrainian war still continues despite the sanctions, including crypto, imposed on Russia. Needless to say, Russia is not the only country subject to such sanctions. The EU has also extended its restrictions to Belarus and Iran.