These events are occurring while the situation in Ukraine continues to worsen. Earlier this year, the EU restricted only “high-value” crypto-asset transactions to individuals and businesses in Russia. The current sanctions are likely to become more severe for the Russian Federation.
EU Sanctions Over Ukraine May Target Russian Crypto Services
The EU is getting ready to impose further sanctions on Russia. Russia’s decision to declare partial mobilization as part of its expanding military operations in Ukraine prompted the imposition of fresh sanctions. Russia’s actions to annex seized Ukrainian territory via what are perceived as sham referendums are also a factor in the new rounds of sanctions.
Trade is the first area to feel the impact of the package. European Commission President Ursula von der Leyen has stated the EU’s plan to put a further embargo on imports from Russia. The new restriction will also hinder Russian technology exports that the Russian military may use. As the first portion of the package, this one will go into effect first. Russian oil has also been on deliberation for a price cap.
The new laws would further constrain Russians’ access to digital asset-based money transfers. According to Bloomberg’s claimed expert source, cryptocurrency is a part of this asset category. The European Union Commission wants to limit European companies’ ability to trade with Russia. Providing services like cryptocurrency wallets, accounts, and custody to customers in Russia is a vital part of this prohibition.
Individuals Associated with Russian State-Owned Firms Will Be Subject to European Union Penalties
The insider further said that precious gems and jewelry would be a part of the ban. Since the strategy is still secret, the sources asked that their identities not be published. The prohibition aims to punish anyone who has a hand in planning and executing the recent referendums in Ukraine. The restriction aims to prevent EU nationals from obtaining highly compensated positions in Russian government-owned businesses. It suggests becoming tough on anybody who tries to violate the limits.
Sanctions were put into place this spring, and digital currencies were the target. The EU Council has already passed six such sets of rules. The group was formed to seal any remaining cryptocurrency-related legal gaps. During that time, EU regulations limited the provision of services involving “high-value” cryptocurrencies to Russian companies and individuals. Digital currency amounts above €10,000 (about $9,803) were restricted.
The European Union has approved various sanctions on the Russian Federation after recognizing Ukraine as a candidate for EU membership. This had happened since the end of February when Moscow launched a full-scale military assault on Ukraine. All of them must be approved by every member state before they can take effect.