The EU Prohibits the Provision of High-Value Cryptocurrency Services to Russia

The decision comes in response to worries that cryptocurrency is being used to dodge sanctions imposed in response to Ukraine’s invasion.

Member states of the European Union agreed today to prohibit Russia from providing high-value crypto-asset services, as part of a fifth package of sanctions issued in response to the Ukraine crisis.
The European Commission stated that the action will “help close potential loopholes” in existing prohibitions. It was introduced alongside sanctions on four Russian banks, coal imports, and offering advise to oligarchs on wealth-concealing trusts.

According to a statement released by the EU Council, which represents member states’ governments, the measures extend a prohibition on deposits to cryptocurrency wallets.

Christine Lagarde, President of the European Central Bank, recently warned that crypto was being used to escape sanctions, despite the lack of evidence.

The commission stated in an April 4 FAQ that crypto was already covered in existing asset freezes and that on March 9 the definition of “transferable securities” was expanded to include virtual assets.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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